FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION

(INVESTMENT MANAGEMENT) (HONS)

SEMESTER MARCH - AUGUST 2023

TECHNICAL ANALYSIS (INV556)

MOCK TRADING REPORT

PREPARED FOR: MISS NURUL HAIDA BINTI JOHAN

GROUP: JBA251 4D

PREPARED BY:

NAME STUDENT ID

MUHAMAD AZAMUDDIN BIN AB AZIZ 2022786107

SUBMISSION DATE: 3.7.2023

ACKNOWLEDGMENT

In the name of Allah, The Most Gracious and The Most Merciful, I want to convey my
gratefulness for his guidance and strength in completing this assignment. I also want to
convey my thanks to my respected lecturer, Miss Nurul Haida Binti Johan, for her guidance
and teaching throughout the semester, without her there will be no ability for me to complete
this subject. To not forget, I also want to express my gratitude towards my parents and family
members for their support in terms of emotional and physical support that give me the
motivation to continue working harder in my studies. For my friends, especially my
classmates from JBA251 4D for their help in answering my related question and etc, thank
you so much for the help. Last but not, I want to thank everyone who has given me their
support whether directly or indirectly, I really appreciate it.

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TABLE OF CONTENT

NO. CONTENTS PAGE NUMBER

1.0 INTRODUCTION 3

2.0 STRATEGIES USED: 4 - 14

2.1 BUY ON BREAKOUT (BOB) PRICE PATTERN 4-5
2.2 BUY ON BREAKOUT (BOB) RESISTANCE 6 - 11
2.3 BUY ON BREAKOUT (BOB) 52 WEEK HIGH 12
2.4 BUY ON DIP/SUPPORT 13 - 14

3.0 CONCLUSION 15

4.0 APPENDIX 16 - 17

5.0 REFERENCE 18

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1.0 INTRODUCTION

In investment analysis, one of the most important skills and knowledge that is widely used in
investment and trading decision is technical analysis. In general, technical analysis relates to
the study of historical charts in order to make investment decisions. According to Adam
Hayes (2022) from Investopedia, Technical analysis can be defined as a trading discipline
that involves evaluating investments and identifying trading opportunities by analyzing
statistical trends obtained from trading activity, such as price movements and trading
volume. In this report, I will explain my strategies in mock trading that basically relate to the
technical analysis aspect of how I buy and sell the selected stocks on Bursa Malaysia. It
includes buying stock on a breakout or buying on a dip or selling the stock when the stock
reaches the take profit price or stop loss. The platform used for this mock trading activity
was Bursa Marketplace with the initial capital was RM50,000. For the outcome of the mock
trading, I was able to complete 13 total transactions that involves buy and sell transactions
for 13 different stocks on Bursa Marketplace with a total profit is around RM769.

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2.0 STRATEGIES USED

2.1 Buy on breakout (BOB) Price Pattern

A. Counter: AAX (2700 unit)

TP3: 2.00 TP2: 1.92 TP1: 1.85 (sell all at 1.86 on 9 June)

Entry Price: 1.78 (Buy on 6 June) Strong Support: 1.71 Stop Loss: 1.66

B. Counter: SFP TECH (7100 units)

TP3: 3.00 TP2: 2.90 TP1: 2.875

Entry Price:2.78(Buy on 14 June) Strong Support: 2.75 Stop Loss: 2.73 (Sell on 15 June)

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Summary Of Buy Breakout (BOB) Price Pattern

For buy on breakout price pattern, I have used this strategy to buy 2 stocks which are AAX
and SFPTECH. For both stocks, I have identified one of the continuation price patterns
which is a bullish flag as illustrated above. For counter AAX, the breakout occurs on the
symbol (x) on my entry day on 6 June, with the breakout point at around the price of RM
1.76. The AAX stock was able to continue the uptrend and I was able to sell the stock on 9
June, at my take profit of 1. Meanwhile, for SPFTECH, the chart above shows a bit of a
decrease compared to my trading plan as at the end of June the stock made a stock split for
3:1. For the buying on breakout price pattern, the breakout point occur on the symbol (x) that
also the day I bought the stock at RM 2.78. But for this stock, I was not able to generate
profit as I sold the stock at my stock loss point of RM 2.73, or on the (/) symbol. But after I
sold my stock, the stock skyrocket for a few days after that. It may be due to I set the stop
too near my entry price and made the stock hit the SL before it make a reversal. To
summarise this strategy, for both price patterns used is an uptrend continuation price pattern
which is a bullish flag and one of the counters which is AAX able to increase the price and
make me some profit.

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2.2 Buy on breakout (BOB) Resistance

A. Counter: EG industries (12100 units)

TP3: 1.45 TP2: 1.37 TP1: 1.30

Entry Price: 1.23 (buy on 1 June) Strong Support:1.18 Stop Loss: 1.16 (sell on 7 June)

B.Counter: AEMULUS (13800 Units)

TP3: 0.405 TP2: 0.395 TP1: 0.390 (sell on 13 June)

Entry Price: 0.355 (Buy on 6 June) Strong Support: 0.340 Stop Loss: 0.335

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 C. Counter: ECOWLD (12000 units)

TP3: 0.925 TP2: 0.890 TP1: 0.850

Entry Price:0.81(Buy on 9 June) Strong Support:0.79(sell on 20 June) Stop Loss: 0.78

D. Counter: QES (16400 units)

TP3: 0.685 TP2: 0.660 TP1: 0.620 (Sell on 14 June)

Entry Price: 0.605 (Buy on 14 June) Strong Support: 0.595 Stop Loss: 0.590

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E. Counter: INSAS (6400 units)

TP3: 0.865 TP2: 0.855 TP1: 0.850

Entry Price:0.835(Buy on 6 June) Strong Support:0.825 Stop Loss:0.820(Sell on 7 June)

F. Counter: MSM (15300 units)

TP3: 1.10 TP2:1.04 TP1:1.01(Sell on 19 June)

Entry Price:0.975(Buy on 15 June) Strong Support:0.965 Stop Loss: 0.950

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G. Counter: BETA (30200 units)

TP3: 0.550 TP2: 0.535 TP1: 0.520

Entry Price:0.495(Buy on 16 June) Strong Support:0.480 Stop Loss:0.470(Sell on 18 June)

H. Counter: EPMB (12100 units)

TP3: 0.940 TP2: 0.890 TP1: 0.860 (Sell on 21 June)

Entry Price:0.835(Buy on 21 June) Strong Support:0. 815 Stop Loss:0.810

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Summary Of Buy Breakout (BOB) Resistance

For buying on breakout resistance, I have used this strategy to buy 8 stocks which are EG
industries, AEMULUS, ECOWLD, QES, INSAS, MSM, BETA, and EPMB. Out of 8 of the
stocks, half of it able to give me profit which is AEMULUS, QES, MSM and EPMB. Moving
on to the first counter chart, EG Industries, I bought the stock when the stock break the
resistance line on 1 June at the breakout point, at a price of RM 1.23. Even though the stock
was able to record a higher price on the same day with the highest point at RM 1.27, but I
did not sell the stock as it did not reach my nearest take profit which is TP1 at RM 1.30. As a
result for the next few days, the stock declined and reached my stop loss price of 7 June.
Next, for the second counter used under this strategy, AEMULUS, the breakout point occur
at the price of RM 0.36 on 6 June. To optimise my profit I waited until the price drop a bit at
my entry of RM0.355 on the same day. I was able to generate profit from the counter as I
was able to sell the stock at TP1 at RM 0.390.

Furthermore, for the third counter, which is ECOWLD, I bought the stock when the counter
break the resistance at the breakout point at RM 0.810 on 9 June or at the (x) symbol. Even
though the stock price increased after that, it did not reach my target price at TP1. After that,
the price started to drop and hit my strong support a few times before I sold it the RM0.79 on
20 June. Moreover, for the fourth counter, QES, it has 2 breakout points, one for the
breakout trendline and one for breakout resistance. For the breakout trendline, it occurs at
RM 0.605 meanwhile for the breakout trendline it occurs at the previous day's closing price
at RM 0.60. For the entry, I decided to buy the stock at RM 0.605 as there was not too much
difference between both breakout points. I was able to sell the stock on the same day as it
hit my nearest TP1 at RM 0.620.

Besides that, for the fifth counter for this strategy, I bought INSAS at RM 0.835 as it break
the resistance on 6 June at the breakout point of (x) RM 0.825. But after I bought the stock,
the candle formed a dragonfly doji after the closing price indicating a reversal signal from an
increase signal to a decrease signal made the stock to my stop loss a few times before I sold
it was at stop loss on 7 June. Next, for the sixth counter, I bought MSM at RM 0.975 as it
break the resistance on 15 June at the breakout point at RM 0.965. I was able to sell the
stock at a higher price at my TP1, RM 1.01.

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Moreover, for the seventh counter, which is BETA, I bought the stock as it break the
resistance on 16 June at the breakout point at a price of RM 0.495 that also my entry price.
Even though increased after that on the same day at the highest price of RM 0.50, the price
did not reach my nearest take profit point at TP1. After that, the stock’s price declined at a hit
my stop loss of RM 0.47. Last but not least, the last counter that used strategy is EPMB. The
breakout occur on 21 June with the breakout resistance point at RM 0.81. Not only that, on
the same point EPMB also break its down trendline as illustrated above. With the support of
high volume for the day, I bought the stock at RM 0.835 and was able to sell the stock on the
same day at my TP1 point of RM 0.860.

In summary, for buy on breakout resistance strategy, it has a 50% of success rate in terms of
profitability as half of the traded stock using this strategy gave me profit. For this strategy, it
is quite hard to monitor the breakout resistance point made to enter some of the stocks at a
higher price. But I believe that with the support of the high volume, it has the momentum to
increase when I enter to buy the stocks.

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2.3 Buy on breakout (BOB) 52 Week High

A. Counter: JETSON (47400 Units)

TP3: 0.490 TP2: 0.465 TP1: 0.450

Entry Price:0.42(Buy on 12 June) Strong Support: 0.390(Sell on 13 June) Stop Loss:0.380

Summary Of Buy Breakout (BOB) 52 Week High

I only used this strategy to buy one stock, which is JETSON. From the chart above we can
see that, JETSON break the previous highest price at RM 0.380 and make a new high
52-week high on 12 June. For the entry price, I bought the stock at a quite high price which
was at 0.42 made it very risky. But, at that moment I believed that it was still can be tolerated
as from the volume of the stock, it recorded the highest volume on that trading day indicating
it still has momentum. But for the next day, the stock recorded a limit down, which made me
sell the stock at my strong support at RM 0.39 decline of 3 cents from my entry.

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2.4 Buy on Dip/Support

A. Counter: IOI CORP (4000 units)

TP3: 4.02 TP2: 3.87 TP1: 3.80 (Sell on 12 June)

Entry Price: 3.71(Buy on 31 May) Strong Support: 3.69 Stop Loss: 1.65

B. Counter: SSB8 (44500 units)

TP3:0.245 TP2:0.235 TP:0.230(Sell on 12 June)

Entry Price:0.220(Buy on 10 June) Strong Support: 0.215 Stop Loss: 0.210

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Summary Of Buy Dip/Support

For buy on dip technique, I have used this strategy to buy 2 stocks which were IOICORP
and SSB8. For this strategy, I target to buy the stock in the support area or when the stock is
declining. For the stock IOICORP, I bought the stock on 31 May when the stock in decline to
limit down until reach the support area at around RM 3.70 while my entry price was at RM
3.71. My target for reversal was achieved as I was able to sell IOICORP stock at 9 cents
higher on 12 June at TP1. Meanwhile for the second stock, SSB8, I bought the stock at the
support line at RM0.220, with the addition of long-legged doji as a reversal signal on 10
June. I was able to sell the stock at TP1 on the next day at a price of RM 0.230, which
increased by 1 cent from my entry price. In summary, for this strategy, I was able to
generate profit for both stocks indicating it has the highest success rate.

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3.0 CONCLUSION

In conclusion, from the mock trading explained above, most of my buying strategies used in
the mock trading were to buy on breakout resistance because out of thirteen stocks, Eight of
them used the strategy. In terms of profitability, even though my profit is not much, it is still
complimentary as I need to cover my losses from the other stocks. The final outcome, out of
7 from the total stock traded gave me profit meanwhile the other 6 gave me losses. Even
though my major strategy used for this mock trading is Buy on Breakout resistance, it did not
give me the best result as only half of the stocks used under this technique give me profit.
The best strategy for my portfolio comes from buy-on dip/support as both stocks that used
the strategy give me profit. For the confirmation to enter the stock I heavily rely on the
volume transaction for the day as in my understanding, it shows whether the stock still has
momentum or not. For the target price and stop loss, I solely used support and resistance to
buy and sell the stocks. In this mock trading, I also try to maximise my profit by making sure
the profit runs longer and selling the stock immediately when they hit my stop loss or maybe
on my strong support. Finally, from this mock trading, I was able to identify and learn on best
strategies for me to use to buy and sell stocks and risk management.

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4.0 APPENDIX

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5.0 REFERENCES

Hayes, A. (2022b, March 14). Technical Analysis: What It Is and How to Use It in

Investing. Investopedia.

https://www.investopedia.com/terms/t/technicalanalysis.asp

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