Chart Source: Poemsview 24th June 2019
Sembcorp Marine had a morning run probably due to the news that was released last Friday and those unsuspecting traders probably jumped in in the morning hoping for a nice gain. Unfortunately that didn’t quite happen, Sembcorp Marine opened at $1.57 and moved up slightly to $1.59 before it got hit hard and slammed all the way down to a low of $1.50. This also coincide with our resistance at $1.58 which is close to 7% upside since we blogged. Profit taking came in and those who entered today probably didn’t end the day that well.
As the saying goes, buy on rumor and sell on news. As news was released, chasing the price wouldn’t be recommended Here are some reasons why.
- Sembcorp Marine had a run up before the news
- It is not us to usually chase on news release.
- Lastly, before entering an trade, it is always important to do a risk reward analysis in order to ensure that your trade makes sense.
Sembcorp Marine is currently at the uptrend support and breaking that might see it move to the horizontal support of $1.45.
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