SembCorp Industries

Sembcorp Industries looked ripe for a rebound back to the 5.10 to 5.20 region (first target) and we shall see how it performed from there on whether it can hit 5.30 to 5.40. (second target).

Sembcorp Industries

CapitaRetailChina & Sembmarine

Two nice looking charts to share.

CapitaRetailChina

CapitaRetailChina

Spotted this when it was around 150-152. Neat cut loss below recent low and target a swing back to 158-160 (first target).

SembMarine

Sembmarine. A rebound back to 4.40-4.60 on the cards?

Time to be Noble?

Noble looked interesting for a short term counter-trend trade. It has a bullish harami the day before and 1.05 seemed to be a strong support that extends all the way back to 2011. The founder and CEO have bought back the shares at around 1.08 in the last few days and that could provide an interim support for this counter. The reasons for its huge drop last week was due to "below than expectation" results and that one of its 3rd largest shareholder, Harry Banga, placed out $200m worth of shares.

Daily Chart

Daily Chart

The target for the rebound will be around 115-118 with a stop loss below 1.02. Given that this is a counter trend trade, it will be wise to be nimble and much will depends on how the US markets perform this week.

Weekly Chart

Weekly chart

You can see that it took 12 weeks to move from 1.08 to 1.35 but only 2 weeks to move from 1.35 back to 1.08.....

Watch the STI neckline!

I have shared with you on stars gazing and on hammers. Today i share with you the neckline and how to do a projection if the neckline is 'broken'. 

The neckline of STI is around 2,980. If the neckline is breached, it usually means an ugly show as you will lose the pants as well. 

The STI looks like forming a double top formation. To project the downside, simple use 2980 (neckline) less the sum of [3,088 (around the high of the double top) - 2,980 (neckline)] = 2,872 (downside projection target)

   

Trading is a probability game and this is my current view on STI should the neckline be breached. If it comes, it is usually fast and furious.

I will usually not trade unless i am either shorting or until i see clearer buy signals. Happy trading.

Watch out for the hammers

Not sure if you remember my post on "the stars are starting to appear..."back on 18 Sep.

Today I write the other version of it. Watch out for the hammers and this will be how i can potentially trade it.

Hammer

As in a shooting star, the hammer in the candlestick is the other opposite version of a reversal signal at the end of the "correction". The aggressive trader will buy near the close of 1.07 yesterday and put a stop loss at 1.02. The less aggressive trader can buy this morning and use the same stop. The first target will be around 112-114, the second target will be around 116-120 and the more aggressive target will be around 122-124. Since the price has already moved up, i will also move the stop to around 106 to ride the stock.

Shooting stars again?

GLP and Osim showed shooting stars today and i will usually tighten my stops if i am trading the position.

Happy trading.

CapmallsAsia

An update to my previous post on 15 Sep 2012.

A very nice cup and handle pattern. This is a bullish pattern. Enjoy the ride... 

No 3 No 4 ?

I haven't been trading actively since my last posting to share with you how to watch out for the "stars". 

For the last 2 weeks, the market was probably in a no 3 no 4 (不三不四) situation where it was neither going up nor breaking down. It is basically in state of confusion and in a limbo until we can see a clear winner between the bulls and the bears. I will probably continue to stay on the sidelines until i can see trades that give me a better risk-reward ratio.

Straits Times Index

Let's do a quick recap on STI. My previous post was here. 3088 seems to be a nice 4-D number and a pretty strong resistance. It seems unclear whether STI is going to break above 3,090 to resume its bull run or consolidate sideways and form a double top but i will watch the show from the sidelines. 

Ezion

Ezion seemed to be undergoing a correction after its strong run up. It has almost doubled in price 4 months! What a spectacular run. Traders who are keen on this sector can probably wait for the correction to finish its course before getting back in again.  I think it will likely do a correction in the coming days.

STX OSV

Very interesting counter. I am interested to buy this for my SRS portfolio but the major shareholders are  'selling real hard'. I will see how this goes.

Olam

One reader asked for my view on Olam. I think Olam is trading sideways with downward bias  towards the $1.90 level. No change to my earlier views. 

It is always difficult for me to give a view because I am unable to advise on your own risk tolerance and investment horizon. I will share a topic on risk and reward next time. You have to know your own risk and reward each time you enter a trading position. If the risk versus reward is not good, then just give it a miss. I see some traders risking a large amount of capital for a small profit (example buying 500 lots for a 2 bids movement). Well my only kind advice is that make sure you can cut loss before you move to this level. This "level" is for the 'professional' scalpers who can monitor the market closely. It will not be suitable for traders with limited capital outlay or traders who have difficulty cutting losses quickly.

Happy trading.