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
City Dev had a nice run up recently and hit its major resistance of $9.It is currently sitting on its horizontal support of 8.76 but if that breaks then we might start to see further downside and profit taking to an eventual target of about 8.35. For a tight stop loss it can be at 8.90 if not at 9.02.
Yours
Humbly
Wilmar, one of the weaker stock for today, the banks rebounded and some of the blue chips closed quite well . It didn’t manage to rally much in the last few days as we would like(so that we can short at a higher price) and is currently sitting on the 3.05 horizontal support. With that if 3.05 breaks we might see if head down to test 2.96 as the previous low. Our stop loss would be at 3.13.
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 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.
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 =)
Yours
Humbly
Sembcorp trading in a range hit the resistance and it might come down to test the 2.8 support and if it remains weak we might eventually show 2.6 in the coming weeks. Stop loss will be above the resistance of $3
STI came very close to our resistance of 2964 and it retraced from there. But friday’s closing was strong on the upside so lets watch to see if market will break that resistance and maybe test 3000. We could still plant some shorts on weaker stocks which does not move up with the index.
Yours
Humbly
Keppel Corp posted 2Q 2016 Net Profit down 48% to S$205 million, compared to S$397 million for 2Q 2015 just last week which sent the stock down. Some support seen at 5.42 area and if that doesn’t hold then it come down to 5.35 then 5.20. We are looking at more downside for keppel corp
Yours
Humbly
Sembcorp mar , it pushed below its major support of 1.505 level and currently still below. it was testing 1.505 level a couple of times and finally cracked below. This signal weakness and with that we would a short position could be made at 1.485 with a stop loss at 1.52. It’s results will be out on 28july will it suffer the same fate as keppel corp? Lets stay tune. For now sembcorp mar is weak to us.
Yours
Humbly
Capitaland is above its 200ma and now above its downtrend line too . With that we might see more upside in the coming days and if sti were to break above 2964 good chance capitaland could go to 3.19 first. Our stop loss can be one pip below the 200ma or 3.03
CAO (China aviation which we post earlier went to a low of 1.39 yesterday but it rebounded strongly today with an increase in volume. One should be careful if you got a short position either reduce position or wait till it hits stop loss at 1.52 and may even consider to go long then. =)
Yours
Humbly
WHAT a MASSIVE gap down for wilmar today due to profit warning of 230mil. Wow if you shorted it which we spotted on our blog.
In our previous post we mentioned that the resistance was at 3.37 and stop loss at 3.38 . Well wilmar broke 3.37 and tested 3.38 but came back down after that and didn’t manage to recover ever since which showed a sign of weakness. Congrats if you re short it and now where to for wilmar? It could try to move back up to about 3.24 range which is the next resistance and after that we might see more downside . As the results are expected to be bad it might be tough for wilmar to rally back to 3.38 level hence we are still looking to short it.
On the other note, STI is coming very close to our target of 2964 off by just 10 points. If momentum is good we might see it come close to 3000 and once there we might be looking for short opportunities. Stay tune =)
Yours
Humbly
China Aviation or CAO which many are used had a good run so far and is now met with some major resistance at 1.50 and since then it was unable to break through the last few days. We might be looking at some downside in the coming days to that lower uptrend line which we drew at about 1.30. Our entry would be when it breaks the support of 1.42 and stop loss at 1.52. We will be using CFD for our shorts.
Btw, innovalues got stopped out last week and it had a heavy sell down that is why having a stop loss and proper trade plan is very important.
GLP on the other hand had a further run to 1.95 today =)
Yours
Humbly
