Market Technician

OCBC: Swing Trade Revisit Following is a re-cap on the swing trade (or scalping) idea for OCBC on Wednesday. The trade went well as planned and the trader would have closed the trade at S$9.05-S$9.07 zone this morning. ... As I normally share during my 1-on-1 coaching sessions, simple understanding of the stock's phase allows traders to adjust its target price and stop accordingly. In this case, a conservative target price and tight stop works well as OCBC trades in a consolidation zone. Today is the day of trading for 2016. On the last day, I always ask myself how has I improved as an investor/trader this year and what are my goals for the next year. It helps and I hope you'll do the same too. 2016 is a memorable year and so is 2006. 10 years ago, holds one of my most memorable trades. Traded Genting SP, happily shocked to learn that Genting won the bid as one of the Casino operator in Singapore, while I was still holding to Genting shares and was polishing my trend trad...

OCBC (O39): Swing Trade Technical Observation:  The stock pulled back since forming a high on 8th Dec 2016. The trading volume softens as the stock price came down; technically low volume selling signifies a pull back, instead of a trend reversal. S$8.85 level is a significant support level in view that it’s a support-turned resistance level coupled with Fibonacci 50% retracement level. Thus, we are seeing a good probability of price rebound towards next immediate resistance at S$9.10. As the stock continues to trade in the consolidation phase, swing trade with tight stop and target price is preferred. Probable Trade Plan: Entry: S$8.92 Target: S$9.10 Stop: S$8.84 (RRR: 2.25x) Similar Occurrence on: 19/06/2009, 25/11/2010, 08/03/2012, 30/12/2012, 15/01/2013, 05/09/2014

BreadTalk Revisit Identifying market phase is important and has always been the first step of my market methodology, it helps traders identify trading opportunities more efficiently. ... A re-cap, following was an earlier post on BreadTalk. The stock was trading in the Mark Up phase with momentum paused, forming a Bullish Flag Pattern. Traders can take the opportunity and apply Fibonacci projection tool (a simple and useful tool I discussed in my last seminar) to determine the target price. The trade went well as planned. Breadtalk will likely enter into another accumulation/distribution phase, in view of the light volume traded during the later phase of the mark up. I will share more of my methodology and future seminar details in my future posts.

Straits Times Index (STI) Update: Commentary: Straits Times Index (STI) continues to experience hangover from last week's US FED rate hike and Janet Yellen’s hawkish forecast. Currently, we are seeing the index in a retracing swing after touching 2,980. Technica Observation:  STI will test its support at 2,880 – 2,900 level, a significant support for the index. It is a confluence of 3 technical support level. Personal bias for STI to rebound from this crucial level (2,880 – 2,900) and retest 2,960-2,980 level. Alternate direction is STI continue to retrace and trades back towards recent low of 2,750 level.

Keppel Corp (BN4): Breakout Technical Observation: After 9 months accumulation action between S$5.00-6.00, KepCorp has breakout from its range, potentially entering the mark up phase. Using the Fibonacci Retracement tool, first target is S$6.30 (23.6%), followed by S$7.00 (38.2%).