TESLA -[ $600 On The Cards?? Could Go Higher If…]

27th November, 2020, 7:07 AM

TESLA -[ $600 On The Cards?? Could Go Higher If…]

ImageSource : Marketwatch.com

Tesla 27th Nov 2020

Chart Source: Tradingview.com

By now we should all be familiar with the name Tesla and how it has been making headlines recently with the inclusion in the S&P500. Elon musk is now the 2nd richest man in the world though there have been debates that he’s actually 3rd but according to the man “I really couldn’t care less,” Musk emailed Forbes about his net worth in July. “These numbers rise and fall, but what really matters is making great products that people love.” (Quote from forbes)

Just two weeks back Tesla was trading around the $400 levels was when we continued to be bullish on it. Read back here to know more. It broke the $458 resistance level and never looked back gaining almost 30% in just 2 weeks!

Are we still bullish on Tesla? Pretty much and here are some reasons why:

  1. In the long run, stock movements reflect the success or failure of a company’s underlying business.
  2. Delivery figures, if tesla continues to be able to increase their delivery of cars, this would continue to propel the business forward
  3. The inclusion into the S&P500 ,current shareholders know that index funds tracking the S&P 500 will need to buy shares of Tesla in substantial quantities on or before Dec. 21.
  4. There is over USD 11.2 trillion in assets benchmarked to the S&P500 and roughly USD 4.6 trillion of this total is in index funds. Out of 4.6 trillion 1%-1.5% would probably go to Tesla which means about $46B – 69B! $$$
  5. Furthermore, Tesla is one of the largest short in the world with about 24billion on it. Short sellers might be squeezed and probably have to cover their position if Tesla continues to go up.

From the charts, we might be seeing Tesla moving towards $600  for this year which is our target after it smashed through  the $500 mark.

Of course, never fall in love with a stock and continue to ensure that the company fundaments doesn’t change and its books are in proper order.

Yours

Humbly

Kelwin&Roy

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DBS – [ Momentum Slowing Down? Time To Take Some Profits? ]

26th November, 2020, 7:00 AM

DBS – [ Momentum Slowing Down? Time To Take Some Profits? ]

Chart Source: Poemsview 26th Nov 2020

DBS named the best bank in the world in 2018 was a stock that has been on our watchlist for a long time!

Back in late Sept when we posted on DBS it was just trading slightly below $20. We continued to update our clients in mid  OCT (see above for a snap shot)  and an update again in late Oct. Since then, DBS has rocketed over 25% and we hope you managed to catch a ride on this rocket!

So the question is, is it time to take profits? Well, the answer really lies on your objective for entering. If this trade has met your objective price target, then it’s wise to sell or at least take some profits.

If your objective was to invest in the banks for dividends for the long haul, then selling now and putting your funds back in the bank might not be the best thing. Banks interest rates as we all know are rock bottom *psst* its 0.05% the last we checked. Just check out the rates HERE! So leaving it in the stock might be a wiser thing to do unless you have somewhere else you want to deploy your funds too. At current price, DBS yield is around 4% still decent as compared to leaving it in the bank.

So now lets take a look at the chart to get some sense of direction. From the technical perspective, DBS saw an increase in volume today but the candle didn’t show a full body one and it actually closed slightly below its opening price. Short term wise, we feel DBS might be over extended and a pullback to the 5ema first would be healthy and a pullback to 10ema would be even better! We have drawn the support and resistance for reference too. Common indicators are also showing signs of overbought region. We would prefer a pullback before an entry!

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Yours

Humbly

Kelwin&Roy

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Frencken – [ Possible For Further Move Up? ]

25th November, 2020, 7:31 AM

Frencken – [ Possible For Further Move Up? ]Frencken 25th Nov 2020

Chart Source: Poemsview 25th Nov 2020

Frencken started its engine late evening yesterday when volume started piling in. We saw some positive price action in Frencken a week back and alerted our EXCLUSIVE CLIENTS then.

We can see from the chart that volume has increased and how it managed to stay above the $1.09 resistance too. The uptrend line is currently supporting Frencken too. These are positive signs for us and if this continues we might see it eventually move up to $1.19.

Other electronics stocks are starting to move too, with Hi-p taking the lead this round.

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Yours

Humbly

Kelwin&Roy

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Keppel Corp – [ Up 10% Since Alert, Next Stop?]

23rd November, 2020, 7:17 AM

Keppel Corp – [ Up 10% Since Alert, Next Stop?]

Image source: Keppelcorp.com

Keppel Corp 23rd Nov 2020

Image Source: Poemsview 23rd Nov 2020

Keppel Corp one of Singapore’s stock darling has been on a downtrend for awhile before finding some footing at the double bottom of around $4.08. It was only after it released its recent set of results that actually saw some buying interest. It’s also part of the STI component stock hence we can see why STI has been moving up.

The bullish engulfing candle on 30th Oct came with volume which caught our attention but as there was a downtrend line and the 50ema nearby we waited for confirmation. So as Keppel Corp gathered strength we alerted our clients on 5th Nov of this trade analysis. Letting them in on how we analyze our stocks as seen from above. We’re glad it hit our second target of $5.10 up 10% since our alert. So what’s next for Keppel Corp?

As usual, let’s take a look at the chart to see it from a technical perspective. As Keppel Corp has risen a fair bit from the bottom, a break or pullback would be healthy in order for it to continue its upwards move. A pullback to the 5ema of around $4.80 might be an opportunity to scale in if you missed the first round. An eventual target we might see could be the longer term downtrend line of around $5.40+.

Continue  to keep watch!

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Yours

Humbly

Kelwin&Roy

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SATS – [ Time To Take A Breather? ]

20th November, 2020, 7:10 AM

SATS – [ Time To Take A Breather? ]

Image source: Sats.com

Sats 20th Nov 2020

Chart Source: Poemsview 20th Nov 2020

With news of a potential vaccine coming out, transport, airline, hospitality all saw a nice recovery. Sats is one of them that benefited from this news. As Sats is part of the STI component stock, it has also pushed the STI up for the last few days.

Way back in Aug Sats was already mentioned here in our Blog and in late Oct we updated once more when  Sats was trading around $3.14. A month later and it’s now trading at $4.14 a very nice upside of over 30% since oct.  Now with all the optimism in the air and with prices running up quite a bit, the question is is it time to rest?

To answer that, let’s take a look at the charts. Firstly, we noticed that as the price increases, the volume actually starts decreasing, not the most positive sign for a strong uptrend. Also common indicators would show it being in the overbought region too. Lastly, it had an eight day move up ever since the gap up so some rest or pullback is not much to ask for. Current resistance is around $4.18 – $4.20 and some pullback to $4 which is around the 5ema or slightly lower would be healthy for SATS.

Keep a lookout!

Yours

Humbly

Kelwin&Roy

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HPH Trust – [ Riding The Wave Up, Where’s The Next Resistance? ]

18th November, 2020, 1:47 PM

HPH Trust – [ Riding The Wave Up, Where’s The Next Resistance? ]HPH Trust 18th Nov 2020

Chart Source: Poemsview 18th Nov 2020

HPH Trust up 12% so far, saw a gap up this morning and never looked back ever since! It would honestly be mentally tougher to try to get in there when there was better opportunity the week before.

From our post just last week, we saw HPH Trust trading at $0.154 breaking its horizontal resistance with an increased in volume and that was what caught our attention. We can see that the 5ema supported the stock and volume was very low during each profit taking which presented another good chance for entry.

From a technical point of view, HPH trust has hit two of our targets, $0.160 and $0.167 and $0.172 is the previous high resistance. Breaking that might see it test the 0.177 resistance which you’ll need to zoom out of the charts to see. HPH Trust had some coverager over here. And as mentioned from our previous post, with biden winning the US election , a less aggressive foreign policy could see some relief in the shipping sector.

We hope you managed to learn something from our sharing! Have a good trading day ahead!

Yours

Humbly

Kelwin&Roy

 

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ComfortDelgro – [ Riding The Recovery Wave, Is It Time To Take Profits? ]

18th November, 2020, 7:17 AM

ComfortDelgro – [ Riding The Recovery Wave, Is It Time To Take Profits? ]

ComfortDelgro 18th nov 2020

Chart Source: Poemsview 18th Nov 2020

Hard hit stocks relating to tourism like SATS, SIA and even Comfortdelgro saw a nice rebound in the last few session as news of potential vaccine crowded the headlines. Transport, hospitality, airline stocks all had some nice gains as investors started to rotate to these stocks on hopes of recovery.

Comfortdelgro part of the STI component was a stock that we were eyeing for a recovery when a vaccine is found as demand for taxi would start increasing as people start to travel more and tourist starts to come back too. We saw some positive price action at around $1.49 just last Wednesday and alerted our EXCLUSIVE CLIENTS as shown above!

We’re glad Comfortdelgro had a positive move up reaching our 2nd price target of $1.61 gaining 8% in a week! It is currently at the 200ema and given its a long term resistance, we won’t be surprised if it takes a break first before continuing on its journey to $1.68 and maybe even $1.79. So taking some profits here is not wrong to us. =)

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Yours

Humbly

Kelwin&Roy

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Tesla – [ Good News! Joining The S&P500! What’s Next?]

17th November, 2020, 5:34 PM

Tesla – [ Good News! Joining The S&P500! What’s Next?]

Image Source: arstechinica.com

Tesla 17th Nov 2020

Chart Source: Tradingview.com

Tesla surged over 10% when it was announced that its finally added to the S&P500 effective 21 Dec 2020 (Monday). Inclusion is based on qualitative and quantitative analysis and being included gives a mark of confidence to investors. There is over USD 11.2 trillion in assets benchmarked to the S&P500 and roughly USD 4.6 trillion of this total is in index funds.  The index includes 500 leading companies and an inclusion in this index brings more funds and investors to the company. So with an inclusion, it’ll probably receive more attention as pension funds, 401K and funds over the world start to add tesla to their portfolio.

To be included inside the index, a company needs to have an accumulation of 4 consecutive quarters of net profits. Tesla had 5 and in the third quarter delivered a record number of 140k cars and is on track to deliver 500k cars this year. In fact, in sept it wasn’t included and its price started to fall and touched the 50ema. With a market cap of 400b and overtaking even Visa it was probably a matter of time before its included.

So with the news of the inclusion , what might we expect? The resistance for Tesla is around $458 and being able to close above it then we might see a push towards $500. It has also recently reached the 50ema which we mentioned in our post. Traders, investors might start piling into tesla when it opens tonight and optimism might be growing as now it seems that tesla is less risky of a stock. As mentioned in our previous post on tesla, with biden’s push for green energy, tesla could also benefit from it. Also, tesla is a tough stock to trade and we prefer to be invested in it rather than taking the spikes in volatility.

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Yours

Humbly

Kelwin&roy

 

 

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HK Tech Stocks, Time To Flee? Agree Or Disagree?

13th November, 2020, 7:15 AM

HK Tech Stocks, Time To Flee? Agree Or Disagree?

Image source: FT.com

The last few days have been brutal for tech stocks as news of a potential vaccine by pfizer proves  90% effectiveness. There are still many hurdles surrounding it like the vaccine has to be stored at temperatures matching an Antarctic winter. But knowing mankind, we will overcome adversity! We just need time! So with news of the vaccine, market started to climb and we saw a flow into cyclical sectors ike your banks, airlines , automakers. Tech stocks were heavily sold as the stay home stocks like zoom , netflix all got sold down. Could this be an opportunity  for an entry? We’ll look at US tech stocks another day as our focus for today shall be on the HK tech stocks.

Closer to home, HK tech stocks took a bigger hit as China proposes antitrust law, clamping down on the Big Tech stocks. This was a double whammy for the HK tech as the vaccine news was the first blow and next came the antitrust law. What was worse for Alibaba was that it’s IPO Ant Group got suspended the week before. What a week for Jack Ma! Talk about rough day eh!

We’ll look at Alibaba and Tencent in this post and Xiaomi and Meituan will be on our Facebook post.

ALIBABA ( 9988. HK)

Alibaba’s Singles Day sales top US$74 billion but the anti-monopoly rules over overshadowed these amazing sales figures. Alibaba is the world’s largest retail commerce business in terms of Gross Merchandise value (GMV) with names like TMall, Lazada, taobao under its belt .Its business comprises of E-com, cloud computing, digital media and entertainment, innovation and initiatives. Its total revenue has been growing consistently for the last 10 years  and cash flow from operations has also been growing consistently.

Source: Statista

In terms of Economic moat Alibaba has  a wide one. It has brand monopoly China’s market leader in e-com capturing around 55% of market share of all online retail sale! The second closest would be JD.com at 16% !

Now lets see the chart and see what levels we are looking at

Alibaba 13th Nov 2020

Chart Source: Poemsview 13th Nov 2020

Alibaba has seen its stock price fell about  20% from a high of $309.40 to a low $248.4. This is a healthy correction but can it go down further ? Of course it can! That is why it is important to always scale in to the market. We can see immediate support at the uptrend line at around HKD$247. The next support might be at the 200ema at around $238. Immediate resistance is at the gap of around $258.80. If it can cover that we might see it move to $272.

What’s our strategy for this? So by now you would have heard time in the market is more important than timing the market preached by many including us! We would start scaling in at different points and in batches. Never enter your investment at one shot as this leaves you with zero ammo if the prices falls and who knows if it will fall further right? So if you have 10k to invest into Alibaba, you might want to split it into 3-4 parts like $2500 for each batch and pick up some shares whenever it hits or is near the support. Indicators are also starting to go to the oversold zone but of course oversold can remain oversold. This is just one sign to look at. We have also drawn the potential resistance but if you’re investing for the longer run, these resistance would not be that useful as you are in for the long haul like years!

TENCENT (700. HK)

Tencent is the largest video games publisher in the world. It has 4 big components : value added services (social media &online gaming), online advertising , fintec &business services.

  • WeChat/weixn is used by about 70% of the people in China. It is like our whatsapp just that its integrated with mobile payment wechat pay and many more.
  • It is the number one video game publisher in the world by revenue having major stakes in some the world’s popular titles like LoL, fortnite, PUBG Mobile, Call of Duty online, Clash of clans and many more.
  • It is the number one video, news , music and online content library and companies run ads on these platforms to reach out to their audience.
  • It has also fintech arm and online payment Tenpay competing with Ant Group. It is second to Ant Group.

It has a brand monopoly therefore with the points above Tencent has a wide economic moat.

Its revenue has been growing for the last  5 years

Souce: Seeking Alpha

Its net income has also been growing over the last 10 years and have a healthy cash flow from its operations too

Source : Statista 2020

Let’s take a look at the chart of tencent:

Chart Source: Poemsview 13th Nov 2020

Tencent fell about 11% from its peak .Price is coming close to the mid term uptrend line of around HK$550, next support might be $528 (100ema) then $484(200ema)  should this antitrust law drags on. But who knows right? As from above, the strategy is to scale in by batches at the/near support levels. Resistance at $584 then $611.

Concluding Thoughts 

With the antitrust regulation does put a dampen on these companies. In the longer run , their profit margins might be hit  but with the brightest and smartest working in these sector i’m sure they’ll find other ways to increase profits. With tech companies growing so big at such an incredible speed it is also prudent for China to reign in its over rule these companies and not let them go overboard. China also wants to be number 1 in tech so they probably won’t want to kill off their homegrown tech companies.

In the grander scheme of things, this might be a road bump which companies faces from time to time and eventually grow stronger. Don’t forget, tencent was hit by increased regulation in 2018 and after a year its stock price started to pick up and it has doubled ever since then. With vaccine coming out, some might think that these tech companies might not be that relevant anymore but we beg to differ and think that these companies are quite integral to our lives now. ALWAYS look at the big picture when investing and remember time in the market rather than timing the market. And any form of investments carries risk!

We’ll cover Xiaomi and Meituan dianping in our facebook post so head on over there to check it out.

Any questions? Feel Free to drop us a message!

Yours

Humbly

Kelwin&Roy

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OCBC – [ Sector Rotation, Cyclical Sectors Benefiting]

11th November, 2020, 5:49 PM

OCBC – [ Sector Rotation, Cyclical Sectors Benefiting]OCBC 11th nov 2020

Chart Source: Poemsview 11th Nov 2020

OCBC along with the other two banks saw a surge in price over the last few days and even before the election results were out. As these three banks make up quite a heavy component of the STI, it was no surprise that we saw the STI trending up the last few days too.

We wanted to be prudent and wait for results to be out before entering the market as we never know what may happen and anticipating results could result in being a hero or zero! As OCBC showed signs of interest and life on monday we alerted our EXCLUSIVE CLIENTS on this trade analysis and we’re glad OCBC gave us a favourable run. From our alert of $9, it has ran up to $9.58 which is more than 6% in three days!

From a technical perspective , OCBC has ran up for about 5 days and today’s volume has started to decrease. Some possible scenarios, we might see it push higher to our next target of around $9.84 which is also the gap resistance in the next couple of days. Optimism on vaccine news has funds flowing to the more cyclical sectors on hopes of recovery. It could also take a break as it ran up quite a bit so having a break is a positive thing. We’ll prefer for a retracement before looking at it again.

Want to cut through the noise and get such trade alerts straight to your handphone?

Then be our EXCLUSIVE CLIENT and find out how much value is waiting for you!

See you onboard soon!

Yours

Humbly

Kelwin&Roy

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