As posted on on monday night, ausgroup broke its horizontal support of 56 and came down to 47 the level that we were watching and rebound after that. (Congrats to those who shorted )
The market took a hit after swiber declared that its winding up its operation. A hit to the O&G sector. vallianz took a hit too as swiber has some stake in it. This could just be the start.
We’ll update more tonight on the banks as banks would have some exposure to this sector.
Yours
Humbly
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 regionโs 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 ย 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.
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 ย 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 =)
Yours
Humbly
