Monday, September 16, 2019

SGX: Uptrend may still carry on despite recent rise. Price 8.52.


Just last month, we saw some bullish actions with SGX attempting to break the key 8.10 resistance level..


It has been trading below since last year and sellers were just out there to take it lower,


But finally, it gave way


More importantly, there were some signs of the uptrend taking shape on this move hence,


Some targets were drawn as seen below..


Towards 8.50 resistance which was the previous high seen last year.. See what I mean..





Indeed, we traded higher and hit a road block at around 8.30 where we consolidated below for about 3 weeks…


There were still signs of the short term upside continuing as seen from the 20 day MA, pointing upwards firmly with price holding above..


And we were looking for that firm break above 8.30 with targets reiterated towards 8.50 again…


It was also still holding firmly above 8.10 new support despite market weakness and with profit taking..





Over the past 1 week, target at 8.50 has been hit and it broke through as well,


For now, seeing some heavy selling at 8.60 where it is taking a breather below..


Normal, given the spike we have seen over the past month…


For now, seeing some consolidation again from 8.40 to 8.60 where the upside push may not be over..


Would be looking for more bullish price actions above 8.60 where targets can be revised higher again as seen below..


Let’s see, watching for now as we consolidate… to 9.00 next as drawn below?






Wednesday, September 4, 2019

Mapletree Com Tr: Uptrend to continue as per targets? Price 2.25


Just last month, we have seen Mapletree Com Tr consolidated sideways from 2.0 to 2.10 quietly…


It was kind of taking a breather with its uptrend still looking good..


But market was weaker and sold off with the US China trade tensions escalating but this counter was still pretty defensive..


Holding firmly above 2.00 as seen below..


Was expecting a rebound from this level and eventually for it to break the 2.10 mark to push higher, hence some upside targets were drawn…




About 2 weeks back, finally, we managed to see an attempt to break the 2.10 resistance as mentioned,


Target to the upside was reiterated again as seen below..


To 2.20 first where we may see some profit taking..


Uptrend still looks firm from the trend indicators…





Over the past week, the 2.20 target and resistance gave way to more strength as well and we have hit a high of 2.30 before sellers came back..


Some consolidation seen for now above 2.20 which is normal given the rise we have seen..


Uptrend still looking good above 2.20 and we may see it continue on more bullish above 2.30 where target can be revised higher…


Watching for now… Let’s see..







Thursday, August 29, 2019

Sembcorp Ind: Selling down to critical support. Can this hold too? Price 2.05.


Just about a month back, we saw Sembcorp Ind approaching the 2.50 resistance level that it has been trading below since May…


There were huge sellers there and it rejected that level again with some bearish price action


The trend was also down from the mid to long term indicators and hence..


We were expecting more downside towards the 2.30 level


See what I mean…




Indeed the selling continued after that bearish actions where it rejected the 2.50 with it selling all the way down..


Even our 1st target at 2.30 gave way too..


But some good support came back at 2.20 where it hovered above for about 2weeks..


The trend was still firmly down and a further breakdown was possible too and we reiterated our targets last week as seen below…


To 2.00, the psychological level that is key..





This week, the 2.20 broke down on more market weakness and sellers returned fast..


We are now approaching the 2.00 critical support where there are some short covering which is normal given the sell down we have seen over the past month..


We may start to consolidate above 2.00 for now for a breather but would want to be careful if this support will to break down again where targets can be revised even lower…


See what I mean below,


More for taking shorts to ride any potential weakness rather than just holding on to long positions all the way down imo…


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Monday, August 26, 2019

HPH Trust SGD: Selling down as per target. Some buying seen BUT worst may not be over. Price 0.22.


Just about 3 weeks back, we saw HPH Trust SGD approaching the really critical 0.300 support level,


We have been holding above this level for more than a year and it seems like sellers were ready to break it..


From trend indicators, there were already signs of weakness and a potential breakdown seems very likely..


That firm price action came and some downside targets were drawn..


To about 0.20 as seen below..





Over the past few weeks, we have indeed seen more selling pressure with markets also turning lower..


There we some temp support seen at 0.25 however,


That gave way as well and targets were reiterated again towards 0.20..


Downtrend was intact and sellers were definitely not giving up..





Today, we are almost approaching the next support at 0.20 where some short covering is seen..


Some buyers are coming out to take some profits on short positions so it is normal..


Likely to see some consolidation above 0.20 first BUT…


NOTE that more downside not ruled out on more bearish price actions below 0.20..


Target can be revised lower as seen below… Cautious long positions…. More for shorts to ride further weakness..






Wednesday, August 21, 2019

Starhub: Downtrend still intact for now? Price 1.37.


Just about 2 weeks back, we saw Starhub approaching the 1.45 support level dangerously..


This level was crucial as we had been rebounding from it since the beginning of the year but now sellers were ready to test it again..


Trend indicators were also looking weak as we headed towards 1.45..


A potential breakdown was definitely on the cards..


Hence some downside target was drawn as seen…





Over the next few days, buyers indeed were not able to hold and just gave way.


And down we went with the 1.40 psychological level giving way as well..


Over the past week, we have seen some consolidation below 1.40 with some temp support at 1.35,


If that clears too, target can still be on tracked especially with downtrend firm for now.


See target that was reiterated as the bearish actions plays out


Downside can still continue for now..


More for Shorts to be taken to ride any weakness, definitely would not want to be holding on to long positions blindly till there are any firm signs of upwards reversal…






Friday, August 16, 2019

YZJ Shipbldg: A huge sell down caught! More downside from here? Price 0.88


Just early last week, we had seen YZJ Shipbldg breaking the 1.40 support and pushing lower bearishly..


More importantly, it was approaching the 1.35 key support that has been holding since the beginning of the year..


There were some signs of weakness and hence a potential breakdown was possible..


Some downside targets were drawn as seen..


Note that this was before any new was announced on its Chairman being probed in China..





A few days later, indeed we have seen the bearish price actions of the breakdown happening…


Target were reiterated again and there were also signs of the short term downtrend playing out..


First target was around 1.15 then 1.00…


Then YZJ Shipbldg suddenly tanked down on the news being released..


Breaking the 1.10 support too…




After the trading halt was lifted, it had also broken the 1.00 psychological support and traded all the way to below 0.800..


See where we are below now,


Some support coming back from 0.70 to 0.80 which were previous support levels in 2016..


What a rapid sell down seen..


For now, for any shorts positions, would be good to take some profits as we approached this support as buyers can return to bargain hunt again..


Would want to be careful of more bearish actions below 0.70,


but some consolidation expected for now before more direction given the huge dipped over the past week.






Tuesday, August 13, 2019

Japfa: Selling to continue for now as predicted? Price 0.48


Just last week, we spotted some bearish actions in Japfa with it attempting to break the 0.50 psychological support..


It has been holding above this level for more than a year so any firm price actions below it may start to see more weakness,


Moreover, there were also signs of the downtrend starting to take shape and pushing further..


Indicators are still looking bearish with the longer trend also down for now, especially below 0.50,


Hence some targets were drawn, see what I mean..





Over the past few days, we have indeed see a firm break down…


And sellers don’t seem to be letting go,


With it unable to climb back above 0.50 new resistance, we may expect the selling to continue as per targets..


A bearish for now with downside on tracked as drawn..


Watching, may start to see some short covering as we head towards 0.42..


CFD shorts can be use to ride and profit from any downside…







Tuesday, August 6, 2019

Man Oriental USD: More selling to continue amidst market weakness? Price 1.50


Just about 2 weeks back, we spotted some weakness in Man Oriental which has been in a downtrend since the beginning of the year..


It was approaching the key 1.70 support that has been holding for more than 2 years since 2017…


Sellers seems to be attempting to finally break this support,


Some bearish price actions were spotted and together with indicators that pointed towards a downtrend,


Downside targets were drawn towards 1.50 first…


See what I mean…




We have indeed pulled away from the 1.70 level as sellers took it lower last week…


Heading towards next support at 1.50 as drawn..


Targets were reiterated again as we head lower and more importantly revised even lower if 1.50 were to break down too..


Seems like buyers were just not able to hold especially with market weakness coming back and STI selling down over the past few days..


We are now at 1.50 where some short covering is happening..


But will not rule out more downside on more bearish price actions spotted and a firm breakdown again where next target can be on tracked... watching…


More for CFD shorts to ride any weakness as prices heads lower… would be good to cover shorts along the while protecting profits.






Thursday, August 1, 2019

SPH: Sellers still not letting go for now? Price 2.19. Cautious more weakness ahead...


Just about 2 weeks back, we spotted SPH heading towards the key 2.30 support..


It has been holding above this level since 2018 and so any breach below this support was crucial..


There were also signs of weakness in the mid to long term trend as we approached the level and hence…


Would want to prepared of more downside on a break down…


Some downside targets were drawn as the bearish action played out eventually…


Downside to 2.00 first… see what I mean…




Over the past 2 weeks, we have seen more selling pressure and targets were reiterated…


Short term moving averages also started pointing down more aggressively…


We have broken below the 2.30 support firmly as mentioned and it was just not able to climb back up..


As such, sellers regained control and took it lower,





Over the past few days, we have traded lower and are now at the temp 2.20 support and seems like that is not holding either..


Targets are reiterated again and downtrend can still be intact below 2.20 now


Will likely see more selling before some short covering happened as we approach the critical 2.00 psychological support..


Watching..


More for CFD shorts to be taken to ride any weakness and profit from the downside... let’s see where we are now below..


Thursday, July 25, 2019

ST Engineering: Uptrend still going strong? Price 4.28.


Just early last month, we have seen some bullish actions in ST Engineering as it approached the 4.05 resistance level…


It has tested that level previously but have failed to break through..


But this time, it was different


Buyers seems to be stronger and willing to push higher despite hitting the same resistance…


The uptrend was already in place so any firm price actions above would be meaningful,


Hence some upside targets were drawn towards 4.40 first… see what I mean..




Over the next few days, it started to push higher towards temp 4.20 resistance and we witness some profit taking..


But that doesn’t mean selling back all the way down…


Just a chance for buyers to take some profit and regroup before attempting to push higher..


Trend indicators were still looking strong and eventually we broke through as well..


Over the past 2 weeks, we are back to some consolidation from 4.25 to 4.30..

On some market weakness, buyers are still not ready to push higher but the move may come soon as long as 4.25 holds..


Target has been revised again recently towards 4.50…


Still watching for more bullish actions for the uptrend to continue..





Thursday, July 18, 2019

Wilmar: Reversal still ongoing as per target? Price 3.86.


Just at the beginning of the month, we started to see some bullish actions in Wilmar..


It was attempting to break the 3.70 critical resistance that it has failed to cross above in April..


In fact, it has been trading below this level for 2 years since May 2017..


And finally, sellers gave way for more upside to carry on.. with trend indicators also pointing towards more strength in the short term,


Hence, some upside targets were drawn, toward the 4.00 psychological level as seen below..




Over the past few days, we have managed to see the 3.80 temp resistance level giving way too…


Targets were reiterated again with support now being at 3.70..


This was the original resistance it had broken up from as mentioned previously…


Today, looks like we are finding a new high and attempting to push towards the 4.00..


Can start to see some profit taking near there imo given the rise, however, more upside not ruled out on more bullish price actions…


Watching…


Quite a good recovery it has staged since June last month…







Friday, July 12, 2019

BreadTalk: Sellers still not letting go... Cautious more weakness. Profit from CFD shorts Earlier? Price 0.715


Just at the beginning of last month, we saw Breaktalk approaching the key 0.800 support dangerously..


It has been holding above 0.800 for more than a year but this time there was some signs of weakness as it approached this level..


Indicators were pointing towards the downtrend playing out and hence..


Some downside targets were drawn when we saw that eventual breakdown, see what I mean..


First target towards 0.74 then to 0.66…




Over the past few weeks, we have seen more selling pressure with 0.800 as the NEW lowered resistance..


Was not able to climb back up and sellers came to take it lower..


First target at 0.74 has been hit..


But again, this first support and target may breakdown and head towards our 2nd target as drawn earlier..


So targets to the downside was reiterated again… towards 0.66..





Over the past few days, we have continue to trade lower and downtrend would still be intact below 0.75 now..


Looks set to test the psychological 0.700 soon and if that fails to hold,


0.64 target can be on tracked as mentioned all along..


Watching…


Would be good for some short covering and taking profits for any short positions as it approaches the 0.65 – 0.66 levels…







Tuesday, July 9, 2019

CapitaMall Trust: Uptrend still in progress for now? Price 2.71. Some support seen.


Up to last month, CapitaMall Trust has been trading below this key 2.48 resistance level and this dates back all the way to 2013…


Since the beginning of the year, we have been seeing higher highs with the uptrend starting to take shape but…


this level was still critical for more upside to continue… the 2.48 resistance!


However, just last month, we saw some bullish actions again with it attempting to finally break through..


Buyers were trying to get past it and finally sellers just gave way with a bullish candle seen…


Targets were immediately drawn to capture any upside from here… see what I mean… first target to 2.60 first…




Indeed, it started trading upwards fast and 1st target was hit in a matter of days in early June..


There was some consolidation below 2.60 which was normal give the rally we have seen…


However, more upside was not ruled out and target was revised with the eventually break of the 2.60 resistance as seen below..


Target raised to 2.80!





Over the past few days, seems like we have breached the 2.70 to find a new recent high..


Uptrend still looks intact if we can hold above 2.70 for now..


But we may see some profit taking along the way with 2.80 target still on track.. watching..


Would definitely want to take steps to protect profits while riding more upside if it plays out… :)







Wednesday, July 3, 2019

CapitaCom Trust: Uptrend still continuing firmly for now? Price 2.24.


Just about 3 weeks back, we spotted CapitaCom Trust approaching the key 2.05 resistance bullishly


This level was key as we had rejected this resistance last year before it sold off all the way down to 1.70…


And finally we are back here again..


More importantly, there were some signs of the uptrend in progress again as we approach this level…


Was expecting some bullish moves up and hence some targets were drawn... as seen below…




Few days later, indeed, buyers were ready to take out all sellers and that level and lifted it off…


It finally broke the 2.05 key resistance after more than a year and this as definitely something to take note of,


Target was reiterated again towards 2.20 first as seen below…


Trend indicators were still looking favourable and pointing to more upside..





Just last week, we begin pushing higher and there were some profit taking near our first target at 2.20…


This was normal given the rise we have seen over the past few weeks where we can expect some consolidation along the way up…


However, we were expecting more strength with the eventual break of 2.20..


Seems like that has happened again today..


See below of new target revised last week.. Uptrend intact to ride while take steps to protect profits… 😉







Friday, June 28, 2019

Daily Leverage Certificate: Basic Knowledge You Need To Know Before Trading It (Guest Post by InvestingNote)

The Daily Leverage Certificate is a product launched by SGX that was offered by Societe Generale since 2017. This product is available for trading on the SGX securities market.


DLCs are slightly complex, moderate risk financial products which give investors a leveraged return
based on the daily performance of an underlying reference index.




DLCs have a finite lifespan and will be delisted on its expiry date. The final exercised
value of the DLCs will be calculated and paid to investors automatically on the expiry
date (which is after 3 years).


Note that: (if the Expiry Date is not a Business Day, then the Expiry Date shall fall on
the preceding Business Day and subject to adjustment of the Valuation Date upon the
occurrence of Market Disruption Events as set out in the Conditions of the Certificates)


What is a DLC?

The Daily Leverage Certificate offers investors fixed daily exposure in the following 3
leading Asian Indices as well as single stocks .


It also allows investors to leverage and
capture amplified movements of the reference index.


Investors can either buy "Long DLC" or buy "Short DLC", as the two types of DLCs allow you to bet on both the rises
and falls of the underlying asset respectively.


The underlying indices that the Daily Leverage Certificate will track are the 3 key indices
in the Singapore and Hong Kong exchanges:


MSCI Singapore Index (SIMSCI)
Hang Seng Index (HSI)
Hang Seng China Enterprises Index (HSCEI)


And below are the some of the single stocks that Daily Leverage Certificates track:


Singapore:
DBS
OCBC
UOB
Venture
…and more

Hong Kong:
Tencent (700 HK)
PingAn (2318 HK)
Geely Automobile (175 HK)
Hong Kong Exchange (388 HK)
…and more


What DLC does that really attract investors is that it increases investors' returns as it
increases investors' exposure level to the indices.


How Does it work?

The basic principle is pretty straightforward – let's say if the underlying index moves 1%
from its closing price of the previous trading day, the value of a 3x DLC will move by 3%,
and that of a 7x DLC will move by 7%.


DLCs offer a fixed leveraged return of 3, 5 or 7 times of the daily performance of the
underlying asset. 3x simply means it is 3 times leverage and 5x means it is 5 times
leverage (so does 7x) . Leverage amplifies the returns and losses of investors, be it rising
or falling market.


Currently 3x, 5x and 7x are available for indices and only 5x is available for single stocks.


Below is an illustrative returns for an investment of 1 unit of the 3x Long DLC, that was
bought at $2.00 when the 3x Leveraged STI Index was trading at 9,000 and sold on the
same Trading Day.



What are the fees like?

Management Fee per annum 0.40%
Gap Premium per annum
(a hedging cost against extreme market
movements overnight.)

3x : 1.8%
5x : 3%
7x : 4.2%


Who will find it useful?

Of course, DLCs are not meant for everyone. They are meant for sophisticated retail
investors who wants to do short term trades.


It is also suitable for investors who would like to have leveraged returns form the daily movement of the underlying assets.


At the same time, all investors need to be Specified Investment Products (SIP) qualified
to invest in DLCs.


Those who are not familiar with DLCs or do not have high risk
tolerance should not consider trading DLCs. One should only consider trading DLCs if
you have a high risk tolerance.


Special feature: The Airbag Mechanism

With the Airbag Mechanism, now you don't have to worry that there will be a risk that
losses may exceed deposits as each DLC will have a pre-set trigger for its air bag.


Now what exactly does "Airbag mechanism" mean?


For example, if you were to buy a stock on a 5:1 margin, a leverage of 5x is used and the
underlying asset losses 10% of its value, what it does is that the air bag trigger will come
into effect to automatically trigger an intraday reset of the underlying index.


The airbag mechanism will only be triggered if the underlying asset moves in the opposite direction
of the product. For example, if the STI rises by 20%, the airbag mechanism for the 5x
Short STI DLC will be triggered.


But do take note that the air bag will not prevent you from losing your entire investment
where the leveraged movement of the underlying reference index exceeds the value of
the DLC.


For example, a 5x DLC, with an airbag that is set to trigger if the underlying reference
index falls by 10% will become futile its underlying reference index suffers a sharp fall of
20% or more in the course of a trading day, or at opening of a trading day due to
overnight movements.


In a nutshell...


Other than stock market indices as we mentioned earlier, there are also more than 50
DLCs for 20 regional blue chip stocks ranging from DBS to Tencent, as the underlying
asset! Check out the full list of DLCs here .


For investors who want to maximise their short term exposure to market movements,
DLCs can provide the opportunity to increase the exposure by a fixed factor, up to 5
times.


For indexes, you can select a leverage from 3x, 5x or 7x!


Also, it doesn't matter if the market is bearish as well – you can buy a short DLC to
capitalise on a bearish situation.


For the 5x DLC with Venture as the underlying asset, it actually yielded a return of more
than 70% in a week, just back in February!




To have a better understanding, check out the full educational series here .


Last but not least, if you've never traded a DLC and would like to know how, see if you
qualify by taking the Specified Investment Product (SIP) test here .


Guest Post by InvestingNote. "InvestingNote is the first and largest social network for investors in Singapore. Find out more about us here.