AusGroup operates in the LNG, oil & gas, minerals & metals, petrochemical and process sectors. We have established relationships with our clients in these sectors to build, maintain and upgrade some of the region’s most challenging development projects. ( Taken from their website) is related to the oil&gas sector which is currently weak now. It broke its support of 0.056 and closed at 0.055 today. With that we might see it test the next support at 0.047 if oil continues to be weak. Short entry could be at current price at 0.055 with stop loss at 0.06. This is a micro penny stock which will raise a few concern for us if we’re shorting it.
- It may be suspended. In event it does you might lose your full amount that you are shorting
- Micro pennies can have very erratic movement too. Its depth might be thin so if you’re shorting in big quantity you might have problem covering.
In conclusion, we wouldn’t short very huge for this and would go small only just to ride it down and would be willing to lose full capital if this stock were to suspend.
On the other hand, looking at the blue chips (more stable) capitaland which we pointed out last week had a nice move towards our resistance level of 3.19 and closed at 3.18. Congrats to those who made in this. Most property stock today had some run up which would be a little strange given current market condition. We would continue to be bullish as long as capitaland stays above the 200ma or if it can stay above the resistance of 3.19 which might take it to 3.25 first.
Have a great week ahead. 4 more days to the weekend =)