Trading to Success

Semb Marine

2009-06-14T21:30:00.003+08:00

Havn't been doing update for the past months on a regular basis as I have just elevated my status to that as a father. However, passion for the market runs deep and here it goes again.

Blue lines - Long-term down channel

Green lines- Medium-term up channel

Red lines- Short-term steep up channel

Vol has been declining of late. Watch for crude oil to pull back and this might trigger correction/consolidation to lower band of green channel. It should resume its uptrend around that level.

My view- This is definitely the start of a new cycle ( You dont go from 1400+ to 2400+ and still subscribe to the view that it is a bear rally. This is plain obstinate). Im going long for positional trade, short for short term swing if steep red trendline is broken together with confirmation from receding crude price.

Updated STI chart analysis

2009-05-06T23:13:00.003+08:00

Despite indices breaking above MA200 which signal bullishness, market is unlikely to break above major downtrend resistance line at around 2200 level. Very short-term trader can consider shorting indicies for quick profit at roughly current level. Stop loss strategy applies. Trade with care.

STI chart

2009-04-30T12:21:00.002+08:00

Immediate resistant at prior high of 1946. For new uptrend to commence, we have to break both downtrend line 2 and more importantly 1. Can consider short position nearer to 1946 level with clear reverse strategy if break beyond on strong vol and good macro news. Market unlikely to break downtrend line 1 in the near future.

Rotary

2009-04-14T11:51:00.001+08:00

Accumulate on dip along lower band of uptrend channel. Pirce target 50c.

Shorting opportunity for Blue Chips

2009-03-22T22:46:00.002+08:00

Both DBS and Citydev present good shorting opportunity. Confluence of indicator of both MA50 and Long-term down trendline forming tremendous resistance. Both blue chips are likely to run out of steam soon and should resume its downtrend for this coming week.

Trade with care.

Celestial

2009-03-16T22:52:00.002+08:00

Finally, it breaks up with some decent volume. Short-term bullishness. Resistance at MA20 and gentler down trendline thereafter. Pennies arn't going to run hard in this market, suggest Fast in Fast out for quick profit.

Can you really buy at the bottom for investment?

2009-03-09T23:09:00.003+08:00

Many of us are holding out for the stock market to crash further. However, how many of us are able to catch the shares we want right at the trough?

If index would to retrace to 1200, would you enter than? You might tell yourself than that 1000 is likely. Before you know it, you will probably be chasing shadow again.

If investment is your cup of tea especially with time frame set at 3-5years, One should seriously starts 'batch to batch buying' as and when market plunge.

Go for blue chips though. Companies (esp market leaders) that can survive this storm will return the fastest and strongest.

CityDev

2009-03-04T23:00:00.002+08:00

A trend is assumed to continue its momentum until it changes direction. Short-term downtrend intact. Cluttering just under the trendline. 52 wks low. As the saying goes, high gets higher....low can gets lower.. Today price action drops with huge volume. Shortist can initiate short position anytime just under the cluttering price action under trendline. Cut lost if price break up above trendline.

For long players, watch for breakup with strong vol and overall change in macro news around the world especially those flowing out from US. Take profit once price action nears longer term downtrend line.

Happy Trading.

Dow Jones Latest

2009-02-22T23:26:00.004+08:00

Break prior low with extraordinary high vol. This is a serious warning to all traders who are still holding on to long positions. Both long term downtrend line and short term channel line intact. Index is expected to oscillate within the short-term downtrend channel. Any breakup of the channel will be capped by the longer-term downtrend line. Bearish view. Traders with Short position, congrats, action starting soon. Trade with care and discipline.

Kepland

2009-02-16T21:57:00.002+08:00

High vol with upward price movement near key support area hint of very strong support . Price action not likely to break low of $1.28 in near future. Buy on dip. If price retreats below recent low with changes in key macro-economic condition, exit at all cost.

Trade with care bearing in mind overall macro picture or key indices movement.

Capland

2009-02-04T22:09:00.003+08:00

Short-term wise, price seems to have found some support at this level. Upside price movement likely. Price breakup from downtrend channel and RSI cuts up above 30% line. Buy on dip. Cut lost if price cuts below $2.35 with strong volume. Go short if price action plunge below $2.28.

Happy trading.

SembMarine

2009-02-01T23:33:00.003+08:00

As explained in the chart.

If price action breaks below $1.54, could head down to test $1.36. If $1.36 fails, could retest multi year low of $1.15. Happy Trading.

Dow Jones Update

2009-01-29T23:44:00.005+08:00

'Interesting' triangle developing in Dow Jones. When triangle formation emerge, its time to pay attention!!

Triangle is a result of converging trendlines of support and resistance. Usually, trading action gets tighter and tighter until the market breaks out with great force. Buyers and sellers find themselves in a period where they are not sure where the market is headed. Their uncertainty is marked by their actions of buying and selling sooner, making the range of the price movements increasingly tight.

Finally, when a consensus in the market is reached, this is reflected as the price breaks out of the triangle. A spike in volume on this breakout would reflects stronger consensus that the stock should move in that direction.

However, do note that this triangle formation was not accompanied by diminishing volume and hence might not result in classic triangle breakout kind of of price action. Potential false breakout remains a possibility. Traders should keep themselves abreast of updated macroeconomic condition in order to reinforce the reliability of any breakout in the near future.

Success Logic

2009-01-15T23:34:00.002+08:00

" I don't think I have any original ideas...I've gotten a lot of ideas myself from reading. You can learn a lot from other people. In fact, I think if you learn basically from other people, you don't have to get too many new ideas on your own. You can just apply the best of what you see."

-Warren Buffett

UOL

2009-01-14T23:09:00.006+08:00

Chart 1:

Chart 2:

Anticipation of goodies to be handled out in Singapore's budget and US incoming president-elect Mr Barack Obama crowning have certainly given STI a good run in recent time. UOL did its fair share of price escalation but as expected, it rose just enough to meet its strong resistance at its long term downtrend line before toppling over. (Refer to Chart 1)

Taking a closer look at its shorter term action (refer to Chart 2), UOL annouced its intention to takeover UIC today and the market reacted negatively (Its not difficult to understand why). The volume registered today can be considered as high especially if one takes into account the trading halt for bulk of the session today.

Personal Opinion:

Technically, price action broke down from its rising trendline support. Price is likely to face further downward pressure. If 2.05 fails (which is the MA50 support). We could see price heading down towards the next whole number support at $2. Once that fail, price could continue to fall further with next support likely to be $1.90-$1.92. Bearish

ST Eng

2009-01-11T23:33:00.006+08:00

This is a mini eg. of Triple Top formation in the making. Triple Top is a pattern very similar to the Double Top -- only that there are three distinctive tops rather than two. The technical target for Triple Tops is derived by subtracting the price difference between the top at #1 and the reaction low from the breakdown level. After the third top has been created, the breakdown level is the low created between tops #2 and #3.

Personal Opinion:
Rather than wait for completion of technical Triple Top formation which is form if $2.23 fails, Aggressive traders can consider shorting near resistance level at around $2.58. However, a closing above $2.60 with heavy vol should be interpreted as breakout from resistance and traders should immediately cut loss and cover back position.

Noble (update)

2008-12-29T23:23:00.004+08:00

Commentary:

Price has been rising in agony. This can been seen by the rise in price which is accompanied by declining volume. Noble most recent peak (peak 2) is also lower than its prior peak (Peak 1). I have redrawn its intermediate trendline and price action would most likely to be capped by it. Short-term weakness is expected.

The above scenerio would be negated or less plausible if volume picks up strongly. Trade with care.

Yanlord

2008-12-23T23:55:00.005+08:00

Commentary:
Recently, Yanlord did a fantastic run up from around $0.50 to a high of $1.09. Alot of people are predicting that this could be the start of a new beginning which could propel this China property darling back to its hey days. A simple check on its chart, however, suggested otherwise. Price action was resisted by its long term downtrend line and has subsequently retreated. Therefore, as long as price action is unable to penetrated and break up this long term downtrend line with strong volume, I will still be bearish on this counter and will short it when price gets near the trendline. Caveat Emptor.

Noble

2008-12-22T23:12:00.003+08:00

Commentary:

Noble has been riding on its uptrend channel for the past 1 month. In recent day, its price action met with stiff resistance from its intermediate downtrend line and price action has since break under its uptrend channel line. MACD line has also cuts underneath the signal line therefore adding more weights to the suggested weakness.

Strategy:

Aggressive traders can consider short position if price opens/moves lower than today's closing ($0.965) . Price is than likely to slip towards MA50 support at around $0.90. A more conservative approach would be for price to move nearer to intermediate trendline before initiating short position with tight stop loss in placed.

Investment Logic

2008-12-22T22:19:00.003+08:00

'Fire is the test of gold; adversity, of strong men and of strong companies.'

- Seneca

Other Logic

2008-12-19T12:29:00.002+08:00

'Fail to prepare, prepare to fail.'

-Roy Keane

Investment Logic

2008-12-18T23:10:00.002+08:00

'The successful man is the one who had the chance and took it.'

-Roger Babson

Midas

2008-12-17T23:19:00.003+08:00

Commenatry:

Midas has been riding on uptrend since the begining of Nov. Recently its MACD cuts down from its uptrend line. Since movement in momentum indicators precede price action, this is a cautionary signal that price action might follow. True enough, price action cuts down and closed underneath trendline today (violation of trendline was given further weights with a strong volume day). A 2nd consecutive day of closing under the trendline will confirm of further weakness in the days ahead.

Strategy:

Traders with long position can consider taking profit or cutting their losses immediately.

More aggressive traders can consider short position. Immediate support could be around MA20 level or recent low of 49c. A closing below 49c would spell trouble with more downside momentum to follow.

Investment Logic

2008-12-16T22:43:00.001+08:00

'I've found that when the market's going down and you buy wisely, at some point in the future you will be happy. You won't get there by reading 'Now is the time to buy.'

-Peter Lynch

UOL

2008-12-15T23:38:00.003+08:00

Commentary:

UOL has been consolidating, bollinger bands tightening. MA5 cuts above MA20 and MA50. Price action facing persistence resistance at around $2.1. However, watch for the gush of water rushing in when the dam finally broke.

Strategy:

A strong breakout above $2.1 with strong volume calls for a screaming buy. Go with the flow of water. Fear Not. Agressive traders can pre-empt price breakout once MA20 breaks above MA50.

Li Heng

2008-12-14T22:56:00.004+08:00

Commentary:

All time downtrend line intact. Short-term uptrend line intact as well. Bollingers band tightening points to possible explosive movement soon.

Strategy:

Traders should watch for resolution in either direction with strong vol and initiate position in that direction. As we are pretty near the apex, , price action could just simply drift sideway beyond the apex. As such, any movement beyond the trendline in either direction with light vol should be viewed with caution.

MA5 has cut above both MA20 and MA50. Aggressive traders can consider long position once MA 20 cuts above MA50. A breakout above the all time downtrend line would than be the most likely resolution.

Fear Not

2008-12-12T11:20:00.006+08:00

Common sense and a clear understanding of market cycle must take centerstage now. What goes up must come down and what goes down must come up.

-Rem the Dot. Com boom? what happened after that?
-Rem the Sars scare in Singapore? Capitaland was 99c back than...did anyone bought it?
-Rem the crazy oil rush to $147? How much is it now?

So where are we now? It does not take a genius to realise the world is in some crisis.
Think critically, will a crisis last forever?

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

-Warrent Buffett

Think Rich

2008-12-10T23:52:00.002+08:00

"I always knew I was going to be rich. I don't think I ever doubted it for a minute."

-Warren Buffett

Starhub

2008-12-09T23:08:00.002+08:00

Commentary:

Todays action completely overshadown the past 4 days price action (Outside bar). Open high close low with high vol on a strong market day when STI surge 5.75%.

Strategy:

Traders who still hold long position on Starhub should consider exit strategy as soon as possible. For aggressive shortist, if price action drops below today's low, short position can be initiated for quick profit.

RafflesEdu

2008-12-05T10:30:00.002+08:00

Commentary:

Break intermediate downtrend line with unusally strong volume. Short-term trend channel break on the upside. MA5 cuts above MA20, Price testing MA50. Confluence of Bullish signal.

Strategy:

Just go Long. Conservative traders can consider entering position on days of pull-back.

Trading logic

2008-12-05T00:07:00.000+08:00

"The definition of insanity is doing the same thing over and over again, yet expecting different results."

-Unknown

Investment logic

2008-12-03T23:50:00.003+08:00

"Never let a serious crisis go to waste"

-Unknown

SGX

2008-12-03T23:15:00.003+08:00

Commentary:

After numerous attempt (5 times), 52 wks resistance line remains intact. The longer the timeframe, the greater the number of times it is tested, consequently, the more reliable the trendline is.

Short-term wise, recent uptrend price channel was broken down and conincidentally, this uptrend ends right at the 52 wk resistance line as well.

Strategy:

Aggressive short-term traders can consider short-position with immediate price target near tentative support line of around $4.40. Nevertheless, the low vol on recent short-term rally points to weakness and tentative support line is thus not expected to hold for long. A convincing break of price action above the 52 wks resistance line is required before traders can consider going long. One positive confirmation signal to look out for is if MA5 trends above MA20.

Reward yourself?

2008-12-01T17:23:00.003+08:00

When you have a great trade, why not reward yourself for it? Depending on the size of your profit, you could take the family out to dinner, escape to a getaway retreat with your spouse for the weekend, or perhaps buy that new bronze rim set which you have been eyeing for months.

In some way, this help to reinforce to yourself that you have had a great trade and have followed your trading plan to the letter in doing so. It helps reinforce the positive and instill in you that good things can happen when you follow your plan.

IndoAgri

2008-11-30T16:24:00.004+08:00

Commentary:

The prior low at $0.37 proves to be strong support. Price is now on a new up trend channel. The strong vol on last trading days seens to suggest more upside to come in near future.

Strategy:

Traders can consider long position if the intermedate resistance line since the high of Sept 22 is broken. Another strategy could be to initiate position at the lower band of the new uptrend channel. Cut lost once lower band trendchannel is broken.

Trading as a Business- Do You Have What It Takes?

2008-11-27T10:06:00.002+08:00

Can you make a living in the stock market? Of course you can, but you have to treat it like a business. Before you can properly invest, you need to invest in yourself. You need to prepare yourself mentally, physically and financially. It takes commitment!

What Do You Need to Succeed?

1.Knowledge: If you want to trade for a living, you will have to spend time to learn the strategies that best suits your lifestyle and most comfortable to you. Learn them inside out. You will know what to do when the strategy works and when it goes against you.

2.Information: The Internet is your primary source of information. Without this crucial information, you're practically ‘blind’. It's definitely not healthy.

3.Low Brokerage Commission: It all adds up. Squeeze your broker, get the best rate. Brokerage commission is just like your business overheads. The greater you reduce your overheads, the better it is for your P&L statement. Start calling your broker now!

4.Money: If you're planning to treat trading as a business, your money represents your inventory. As the saying goes, “It takes money to make money.” How much money is necessary to start your business? It depends on what strategies you want to use. Do your sum well. Start saving now!

5.Time: You've got it. Now, you just have to prioritize it. If trading is your business, you'll have to do research on what and when to buy. That takes time. Can you afford it?

6.Emotion: You can't afford it. It has no place in the business of trading. If you properly follow your trading rules, a loss is just a cost of doing business. Nothing more. Keep emotion, along with your ego, in check. You will have both good and bad streaks, but if you use common sense, and know every aspect of your business, you can do just fine. Just be heartless!

7.Desire: You have to want it badly enough. It's amazing, if you want something badly enough, you' will be surprised how far desire will take you.

8.Survival: It comes down to survival. How do you survive when you are stranded in a thick forest? You have to stay positive and start sourcing for something which is good for your stomach. Similarly, if you want to continue to trade and stay in business, you must always maintain a positive mindset and concentrate on making good trades. You have to protect your inventory(money). How? Self-discipline. It's a rare commodity. You can't buy it at NTUC. Either you have it, or you don't. If you think you don’t have it, try getting yourself stranded at MacRitchie Reservoir for a start. Good Luck.

SembMar

2008-11-26T22:34:00.002+08:00

Commentary:
Inverted H &S chart pattern formation. Recent short term action tracing in a upward trend channel. Breakout impending.

Strategy:
Traders can consider initiating position nearer to the trend channel bottom line (watch the opening price for day traders), or upon breakout of H&S formation with strong vol. Price target for short term traders could be the short-term upper trend channel line as profit taking region.

Trading Logic

2008-11-26T13:35:00.002+08:00

"Luck comes and goes.....Knowledge Stays Forever. "

-Unknown

Trading Logic

2008-11-25T23:21:00.008+08:00

No more money, no more trading! Simple ...

"Don’t focus on making money, focus on protecting what you have."

-Paul Tudor Jones

Parkway

2008-11-25T10:28:00.003+08:00

Parkway breakout from downtrend line with piercing pattern. $1.25 1st resistance. Subsequent resistance at various FR level. Looking Good. Trade with care. Hint of rising in agony if vol does not accompany upward movement in price action.

DTI for 25 Nov

2008-11-24T23:42:00.005+08:00

Candidates:
Sembmarine- $1.84 entry-L
NOL- $1.05 entry-L

Please exercise own trading and money mangement discipline.

Venture

2008-11-24T22:22:00.002+08:00

Commentary:

From intermediate to short term, the trend is down. Price broke 10 yr low on heavy volume. This is a very bearish sign and any rebound will probably be capped by the short-term upper downtrend channel line.

Strategy:

Short-term traders can consider shorting on rebound with tight cut-lost set at above upper downtrend channel line. Price target would be for price to test the lower downtrend channel line. A continuous 2 days closing of price above the trend channel will signal an immediate reversal. Price would than be likely to test the intermediate down trendline as drawn.

NOL

2008-11-23T15:14:00.001+08:00

Commentary:

NOL was well supported right at prior low of around $0.94. The strong white candle on the last trading day was a good vouch that the support level was very strong. Price is poised for more upside possibility.

Strategy:

Price has move above MA5 which points to short-term bullishness. Traders can consider long position once price break above downtrend line. Price targets/resistance are set at various Fibonacci level.Traders should consider taking profit along the way up. The next resistance at $1.18 is likely to face some strong resistance with confluence of indicators. Strict cut lost policy should always be in placed.

Capitaland

2008-11-20T22:11:00.004+08:00

Commentary:

Since mid Oct, Capitaland has been range bound as denoted by the 2 horizontal line draw. During this period, Price action has moved in a zig-zag manner as depicted by trendline 1-4. Price action is currently heading lower and there is a strong chance history might just repeat itself again and rebound from range support level.

Strategy:

Aggressive short-term traders should track capitaland closely and go long once price action break up above downtrend line 4. If this happens, price momentum are likely to gather pace and test range resistance level of around $3.30 again. This likely scenerio will be negated if price action close under range support level for 2 consecutive days.

KepCorp

2008-11-19T22:08:00.002+08:00

Commentry:

As expected KepCorp has been under some heavy selling pressure since mid Sept. Recent rally fom the low, ends at fibonacci resistance of 38.2%. Thereafter price action has shown signs of cluttering under the downtrend line.

Strategy:

This cluttering under the downtrend line is an ideal setup for traders to assume short position as cut lost can be kept very tight if price action would to pierce the trendline. Prior support at $4.55 was broken and MA 5 has cut down MA 20 from above. Price is likely to test prior low at $3.35 in the near future

Yanlord

2008-11-18T20:44:00.008+08:00

Commentary:

One way ticket. Down, down, down. Weakness in recent rally was apparent when price fail to move anywhere near downtrend resistance line. Breaking of all time low in today's action could signal of more downside momentum. Bollinger band tightening suggest of explosive move soon.

Strategy:

Traders can consider short position with tight cut lost set at above $0.65. In the unlikely event price move beyond $0.69 (which is the gap resistance $0.67-$0.69), this would signal a reversal and potential double bottom formation. Market getting volatile, timing and speed matters. Trade with care.

Singtel

2008-11-17T22:06:00.006+08:00

Commentary:

Price of Singtel has been relatively stable for a considerable period till mid September when it started its precipitous fall. From the low of its price of $1.99, Singtel has in recent week traced out a bearish pennant formation chart pattern. This pattern in theory is a continuation pattern and price are likely to break support after this period of consolidation and resume its downward momentum on heavy volume.

Strategy:

Despite price tracing out in a pennant formation which suggestion temporarily pause before continuation of trend, nevertheless, short-term traders should bear in mind the slight possibility of reversal. As long as price break out of pennant with heavy volume (note: strong vol is very important, else it could be a trap) short-term traders can consider initiating position in the direction of the breakout. Tight stop lost policy should always be in placed.

Ezra

2008-11-16T19:09:00.004+08:00

Commentary:
Ezra has fallen from its peak of $3 in June to recent low of near $0.30. Recently from the prior low, it stage a strong rally with huge volume by escalating to a high of $0.85 within 1 week. As expected the surge in price tapered off at the downtrend resistance line.

Strategy:
Short-term traders as usual should let price action decide their next course of action for quick profit (Personally, I dont rely much on momentum indicator for decision making). Price could be consolidating now for the next push. Traders can consider going long once price break the downtrend resistance line on a strong vol day which could hint of further upside. On the contrary, if price action goes below MA20, we might see a retest of the prior low again.

STI ETF

2008-11-13T22:36:00.005+08:00

Commentary:

The price of STI ETF is clearly in a well-established down trend since middle of this year. In early October, it suffer a precipitous fall where price hit a low of $1.58. The huge vol registered in the sell-down and the pierceing pattern of the lowest price action day signalled a selling climax and hence a potential key reversal day. Price has since trend higher where it is currently facing resistance from the down trendline drawn.

Strategy:

Traders are encouraged to react according and watch out for significant break out point. A break below short-term support level of $1.78 might see price heading lower to test the all-time low of $1.58. Agressive traders can consider short position once $1.78 fails. However, a break above the trendline, MA5 and MA20 (~$1.90) on a closing basis could see price trending towards the fibonacci resistance level at $2 where price is likely to face stern resistance. The next resistance beyond $2 is at $2.30 where price action is deem unlikely to penetrate in the near or medium term considering the dire global economic condition. Golden rule on tight stop loss should be in placed.

Wilmar

2008-11-12T22:37:00.005+08:00

Commentary:

Wilmar has been trading under its intermediate downtrend line since May. This intermediate trendline was violated once on 10 Nov. Similarly the double bottom formation since early Oct was violated once as well on the same date on a closing basic. Subsequently, price has not been able to attain a higher high for the past 2 trading days and were still trading under the intermediate trendline and double bottom breakout point level. The price action on 10 Nov therefore points to a false break and hint of more downside pressure in the coming days.

Strategy:

Aggressive traders can either choose to short nearer to the resistance level of $2.75 or wait for a break below the short-term uptrend support line before initiaing short position. Having said that, in the unlikely event Wilmar is able to break above $2.75 on a closing basis for more than 2 consecutive days. It will therefore signal both an intermediate trendline break and confirmation of double bottom formation. This will inadvertedly signal a change in medium term trend from bearish to neutral. Traders should than consider initiating long position once that happen with price likely to test the prior high of $2.91 and subsequently the all important $3 mark.

Ausgroup

2008-11-11T22:36:00.005+08:00

Commentary:

Ausgroup had recently been trading within the intermediate bearish trend channel for the past 5 months. 2 weeks ago it managed to break out from this persistent bearish band with some strong vol white candlestick day. It has since been trading in this new bullish trend channel. MA5 has also cut above MA 20 and MA 50 from below, while current price is now lying on MA50 support and short term bullish trend channel support line.

Strategy:

As the recent short-term bullish price actions have been ascending at a somewhat steep angle (~55degree) as compare to the 5 month intermediate bearish trend which descend at a gentler level (~30 degree), there is a high probability its momentum might face exhaustion soon and price is likely to take a breather in the very near future. A fall in price below the short-term bullish trendline support would signal a pause to the recent run up. Existing short-term traders can therefore consider taking some profit off the table once that happen.

CapitaComm

2008-11-10T22:23:00.013+08:00

Commentary:

Today, price action broke out from its 3-months resistance trendline since 8 Sep with healthy vol. A bullish divergence of vol since Sept was also identified and the break up in price action today confirm that price action could be poised for more upside potential.

Strategy:

Traders can consider to enter Long position once $1.02 (which is the high of today and also the MA20 resistance line) is penetrated with strong buying interest. Price are likely to face some resistance at $1.08 (smaller prior peak) but a more likely short-term price target should be in the region of $1.18-$1.20 (fibonacci resistance, more significant prior peak). A tight stop-lost plan should nevertheless be in place.

SGX

2008-11-08T23:18:00.009+08:00

Commentary:

Intermediate to long term prospect remains bleak for SGX where price action has been downtrending since last Dec 07. The possible continuation of short-term strength will depends on if price action is able to penetrate 5.60 on a closing basis.

Strategy:

Based on above negative commentary on longer term prospect, Short-term agressive traders can consider initiating Long Position only if $5.60 is taken off with tight cut lost point in place. Do take note of the resistance at prior high ($5.70) and MA50 ($5.80). Traders are strongly encourage to take partial profit at the various resistance level mentioned. If trading against main trend does not appeals to you, consider- Avoid.

ST Engineering

2008-11-08T16:57:00.006+08:00

Commentary:

ST Engineering has been trading within an intermediate downtrend channel since Jun 08. The upper trend channel line has proven to be extremely strong resistance with price action touching it for close to 10 times without pentrating it on a closing basis during the period under consideration. Short term wise, Price action has turn somewhat bullish with higher lows registered based on last trading close. Bullish Counterattack Line, Bullish Belt-Hold candlestick on the last 2 trading days and MA5 cutting MA20 from below lend weights to the current short term bullishness.

Strategy:

Agressive short-term traders can cosider long position at $2.40-$2.45 with tight cut-lost plan in placed. The upper trend channel line which conincide with MA50 line points to a price target of $2.55 where price are likely to face intense resistance.

Conservative traders who wish to trade in the direction of the intermediate trend should wait for price to trend nearer to upper trend channel line before taking short position. However, do note that a break of the MA50 line and upper trend channel line on a closing basis (especially with good volume) will signal a change in intermediate trend from bearish to neutral.