Wednesday, September 15, 2021

Dow Jones bearish break down today!


After close to 17 months uptrend, DJI finally breakdown of its long-term uptrend channel and below its 50 days Moving average.

Last traded at 34,577.57

Next targets 33525 and 31100 represent a good 3 and 10 percent downside potential represented by the 2 targets in the short term.

All posts and charts are for educational and illustration purposes only
Monday, August 30, 2021

China Internet Sector - Time For Bottom Fishing ?

China internet vs US internet, tales of 2 market . The KraneShares China Internet ETF (KWEB US) vs the US Internet ETF (FDN US) divergence is the biggest since 2016 exceeding even the last significant divergence in 2018.  Just looking for a rebound in KWEB to its 50-day MA would imply 15% upside and a move back to its 200-day MA would imply 49% upside. JD.com (JD US) and Netease (Ntes) display the clearest evidence of stability, bottoming price action and relative strength amongst the china internet stocks following the decline off the February highs and are presented as preferred buys.

 With such unprecedented divergence some analyst are saying the Chinese internet sector is undervalue but is it time for investors to start ploughing into the market? President Xi Jinping’s

new slogan of “Common Prosperity For All” is throwing into question what new regulation will China add to achieve equal wealth distribution and Xi’s calls for higher taxation

has raised concerned making money  could  be politically sensitive. Internet companies, which have been designated as so-called “key software enterprises” (a category including Alibaba

and Tencent), have enjoyed beneficial corporate tax rates of 10% since 2008. Other companies pay a rate of 25%. There is a strong possibility that China Internet companies honeymoon period of 10% taxation may sooner than later be over. As long as investors fear that the China’s regulators are not finish with new requlations  the China internet will need to wait a little longer before bottoming out. September being a traditionally weak month for emerging markets does not support a reversal of fortune in this sector. I believe the seasonal factor points to a Oct – Nov rebound.





All posts and charts are for educational and illustration purposes only
Tuesday, August 24, 2021

SGX (SGX: S68) Price Weakness Is Likely To Persist In The Short-Term.

 



SGX is trading at day low while most index stocks are up on a positive day.


Fund managers are likely to avoid this stock in view of HKEx (0388.HK) announcement yesterday that MSCI China A 50 Connect Index futures to commence trading in the month of October 2021, which is a competing product to FTSE China A50 contract traded on SGX.


SGX weakness is likely to persist in the short term.


SGX last traded S$10.22.

First Target: S$9.81

Second Target: S$9.34 




All posts and charts are for educational and illustration purposes only
Wednesday, August 18, 2021

Hang Seng Trade Plan (18 August 2021) - Last done 25,867

 No Sign of Strength - Could test 25,000 and 24,000 in the next month.




All posts and charts are for educational and illustration purposes only
Tuesday, August 17, 2021

Frencken Group (SGX: E28) - Strong Stock With A Bearish Price Setup


1. The stock has broken key support level with high volume at S$2.21.

 

2. Contra Phenomenon

Traders chased the stock on 05 August 2021 betting that it would continue to break new ATH were caught as the stock retreated below its support at 2.21. 

The huge volume traded on 05 August has created a supply situation that could dampen the price in the next two to three days due to the contra phenomenon.

First target: 2.09

Second target: 2.00

Third target: 1.93

Stop loss: 2.30

All posts and charts are for educational and illustration purposes only
Friday, August 13, 2021

Sunpower (SGX: 5GD) – Broke its 18-months Uptrend!

 


Could be heading towards the following targets:

First target: 0.60

Second target: 0.55

Third Target: 0.48


All posts and charts are for educational and illustration purposes only

Hong Leong Asia has broken its 9-month Uptrend!

 


Could be heading towards the following targets:

First target: 0.86

Second target: 0.80

Third Target: 0.73


All posts and charts are for educational and illustration purposes only