Stop loss activated + lesson learnt

Today i liquidated my position in HLG after it broke the support line of $0.385 yesterday. I took a small loss though i must say it was quite painful. I can still recall the reasons that i bought this counter. Basically, it was a breakout of an ascending triangle with high volume and it pierced through the resistance of $0.385 which was a downside gap previously. Furthermore, RSI not being in the overbought region makes the deal look even sweeter. So all the technical factors were right for this counter. But alas, it did not go the way as it's supposed to be. This counter did not rally after the breakout and it fell on it's own weight.

HLG chart:


It's not the first time this has happen. A few months ago, i posted in my blog that Hi-P had a triple bottoms breakout but the same thing happened. After the breakout, Hi-P did not rally and it fell on it's own weight too. I guess technical analysis is not fool-proof and there will be times like this. I posted in my blog previously that ChinaKangda had a confirmed double bottoms and it just flew off the roof after the resistance was broken and this was when it went the way technical analysis had forecasted.

Even if HLG rallys back tomolo or in subsequent days, i will still not regret selling this counter cos i had abide by my own trading rules. The most important thing is i must preserve my capital so that i can live to fight another day. To tink of it, maybe greed had the better of me. The various bearish divergences shown in the indices and the volume not confirming index action should have serve as a warning sign that breakouts in market condition like this dun have a high probability of breaking out successfully. I will be back once the bearish divergences gets negated and volume confirms index action so gotta be patient this time round. In the next one or two weeks, i do believe that s-shares or those china stocks will be in play soon and that is if the market does not correct.