Food Empire an uptrend stock had a good run but we feel that some pullback would be good for this stock.
It has broken its short term uptrend line and today it broke its horizontal support of 0.725.
We’re looking at a possible downside to the 20ma or 0.67. Our stop loss would be at 0.785. Breaking that might see Food Empire continue its uptrend.
Remember we’ll use Poems CFD for short and not naked short.
Yours
Humbly
Kelwin&Roy
Wilmar, a palm oil related stock which we blogged about just a day back came tumbling down today to hit a low of 3.52.
It broke below the horizontal support of 3.60 which we have drawn and went to as low of 3.52. Not bad in a day. But of course we always preach slow and steady. =) Wilmar has been down for a couple of days so do take note of that. Our target still stays at 3.48 but we’ll shift our stop loss lower now to 3.62 level. So worse case if wilmar rebounds we’ll break even.
The support will now be the resistance and we’ll add 1-2pip more just in case. We’re using Poems CFD to short the markets and not doing a naked short.
For those who has been asking how to use CFD to short, stay tune we’ll be calling for a seminar shortly.
Yours
Humbly
Kelwin&Roy
Wilmar is a palm oil stock that we’re looking at. Palm oil related stocks had some downside today. Stocks like First Res, golden agri and indoagri.
Wilmar tested its 3.60 horizontal support and recovered slightly. We’ll be watching it to see if 3.60 breaks in the coming days in order to consider a short. We’ll be using Poems CFD to open our short position as we would want to swing it down to 3.48 and then 3.43 if possible. Our stop loss would be at 3.69.
Yours
Humbly
Kelwin&Roy
Sembcorp Industries is one of the many counters that we are looking out for.
It is currently resisted by the downtrend line that we drew and also by the horizontal resistance line at 3.23 . What we like is that there is an increase in volume, the moving averages seems to be sloping up and the 20ma might be cutting above the 50ma which is a good sign.
Another factor to take note is the upcoming opec meeting on 25th May. Where opec will decide if they will extend the output cut. Oil has been rebounding and that might be positive for our oil counters like sembcorp marine and keppel corp both of which we are looking with interest.
Though sembcorp industries is not a direct oil play. It could potentially benefit from the extension cut.
Our possible entry might be 3.24 with a stop loss of 3.12 and a target of 3.35 first.
Yours
Humbly
Kelwin&Roy
China Aviation Oil broke out today just after we blogged on it on Tuesday News was out on Wednesday after market hours that it will be included in the MSCI Singapore Small Cap Index effective on 31st May after market hours. More can be read here
We would shift our stop loss to around 1.66 now so that in the worse case we would still be breaking even. Being alert to take profit along the way is also important in case market turn.
Remember preserving capital in this market is key.
China Aviation Oil hit a high of 1.695 and of course we’re hoping that it can hit our first target of 1.72 which will put us in some nice profit. More volume came in today so hopefully that could lift this stock up in the coming days.
Yours
Humbly
Kelwin&Roy
China Aviation Oil or CAO for short has caught our interest once again. There is an increased in volume today and has reached it’s horizontal resistance of 1.66.
If CAO manages to break that resistance and stay above it we might see further upside to 1.72 first. It is currently above its 20 moving day Our stop loss would be 1.62. We’re choosing to keep to a tighter stop loss this round as recently our local market has been a little choppy. So we’re keeping to a tighter stop loss and reducing our lot size accordingly.
Our job is to manage the risk and let the market take care of the rest. =)
Yours
Humbly
Kelwin&Roy
STI (Straits Times Index) hit our target and closed right on it since our blog post on 2nd may . Our next possible target could be 3288 area.Do remember to plan your trade and take profit along the way
Some have asked where and how to trade the Straits time index and we are happy to say that at poems is the only stock broker in singapore providing traders with the Straits Time Index CFD.
Just drop us a mail and we’ll be glad to show you how you can participate in this exciting index.
Yours
Humbly
Kelwin&Roy
Keppel Corp has built a small base around the 6.47 area and started moving up. It moved up to its 20 days moving average and got resisted but we feel that there might be more upside possibility if this clears.
Keppel Corp could move up to its 50 days where the downtrend line is also. 6.8 is also the horizontal resistance. So if it reaches there then we’ll see how strong the movement could be and if its possible to break those lines.
Our stop loss could be at 6.46
Yours
Humbly
Kelwin&Roy
GKE once again back in our watch list after a nice run up since we blogged last month. GKE as you can see it resisted by the downtrend line which we drew.
Possible scenarios that could play out. It could retrace a little to the second support line of around 0.174 which we might consider an entry Or if it can breakout from that resistance line of about 0.183.
Support would be at 0.173
Our concern is that the simple moving average is kind of closing in together so it might signal a change in trend but if the price starts moving up then the SMA would start moving apart.
On the other hand the EMAs are still apart. So let’s watch it closely the next few days.
Yours
Humbly
Kelwin&Roy
Back on 19th April when we posted regarding the Straits Times Index (STI) we were looking for a correction to start. Well it went down 21 points and start to show strength again. Not much of a correction eh.
Now for the first trading day in May it has broken that 3190 horizontal resistance and marched on to 3215 which is another resistance. If it manage to overcome that we might see it cover the gap and move towards 3249 area. Well, admittedly we were hoping for some sort of correction to come so that we can look for lower entry but market doesn’t seem to present that yet.
The index was being pushed up mainly by our three local banks so it’s not a broad based rally which is a little concern for us. We’ll be going into May being a little careful and remember to be flexible. Though the saying sell and go away in may is on the cards we would still want to see the charts before making a move.
French election, korean tension could be some news that might hurt the market.
Yours
Humbly
Kelwin&Roy
