Following up from our previous post on Sembcorp Marine . We were waiting and hoping for it to break the downtrend line we drew but it never came. It broke the horizontal support line of 1.83 instead and went down to a low of 1.80
In our post we mentioned if the support of 1.83 broke we would be turning the other way which is to go short. A lesson learnt here is to let the market tell you what it wants to do and not try to second guess it. Be flexible and go with the trend. Sembcorp Marine went to a day low of 1.80 which is nearing the 50 days moving average. Our first support would be around there and if it can’t stay above that then we might see 1.74.
We would use Poems CFD to short and not do a naked short as we would like to hold our shorts for awhile. Stop loss are in place.