Market Technician

KSH (ER0): Mark Up Technical Observations: The stock re-accumulated for about 2 months. Line change this morning, currently trading a S$0.94. The volume would need to play catch up for a valid line change. Initial Target is S$1.00, with our usual 8Days MA trailing the trade. Company reported earnings on Friday, with 33.40% drop in annual profit to S$41m, declared final and special dividend of 1.5cents and 0.5cents per share. But what excite the market is the proposed 1 bonus share for every existing share. Its recent venture with its consortium partners in acquiring, Rio Casa could well be another profitable venture amid the current bullish property market. Probable Trade Set-up: E: S$0.94 S: S$0.91 T: S$1.00 R/R Ratio: 2.00x

Boustead Projects (AVM): Potential Mark Up Technical Observations: Boustead Projects (BP) traded with daily wide fluctuations in a low liquidity environment between 0.70-0.80 (re-accumulation zone) before experience a Mark Up in late March 2017. Currently, BP is trading again in a Re-accumulation zone between 0.85-0.90. We are seeing increased in trading activity (volume) in the past few trading sessions which may signals a potential Mark Up again towards the 1.00 level. Agressive traders may consider current level. More conservative traders may wait for a Line Change at 0.905. The company will be announcing its FY2017 results after Market Closed on 22 May 2017. Probable Trade Set-up: E: S$0.88 / 0.905 S: S$0.845 T: S$1.00 R/R Ratio: 3.43x / 1.58x

Thank you for visiting Blog. Please join our Facebook group to receive my recent presentation slides and also future posts on Swing Trading and Wyckoff Method. Wyckoff Swing Trading (FB Group): Facebook.com/groups/wyckoffswingtrading Presentation Slides Avaliable: 1) SGX Trading Symposium 2017 2) Market Depth Trading Strategies: Swing Trading Workshop (Technology Sector)  

Law of Effort Wyckoff's Law of Effort states that on any single trading day (or week depending on time frame), huge volume (effort) push by participants should see huge price movement, resulting in a wide spread (long body). This is a basic principle of effort and result. However, as per Singtel's case study, we saw huge selling volume on 11 May, yet the price action only shows a narrow spread (small body). This divergence of effort and result in Wyckoff's Law of Effort principles, indicates possible exhaustion in selling or hidden buying. Thus, with a lack of weakness, Singtel should continue trading range bound for the coming days or weeks till further strength or weakness is observed. Swing Traders who trades range can consider positions at 3.70-3.72, with exit target 3.76-3.78.

Appreciate many for turning up on a mid-week Tuesday evening for our Swing Trading Workshop at SGX Auditorium. The session was  interactive and engaging, which promotes in-depth learning. During the session, we discussed about systematic exit for our Swing Trades using 8Days (SMA). Today, we saw SIA Engineering cutting below its 8Days (SMA) - S$3.92, trade exited at 3.90-3.91, completing the Swing Trade. Continue visiting us on this blog for more swing trading case studies on using Wyckoff Method for Swing Trading . Swing Trading Workshop @ SGX Auditorium (16 May 2017)

Food Empire (F03): Mark Up   Technical Observations: Stock was in Re-accumulation phase since earlier 2017 this year. Stock broke out (Line change) from its S$0.64 resistance with strong volume. This provided traders with good evidence that the stock is entering into the Mark Up phase. Trend/Momentum indicator also supported the observation with a MACD Bullish Crossover, signaling change in momentum to Bullish mode. The Line change was initiated by a positive earnings results, reporting that the group's change in business model proofs to be a success. Its upstream business (plants in India and facilities in Malaysia) are seeing growth momentum. The group sees further organic growth with further expansions via M&A in the pipeline for both its upstream and downstream markets. Probable Trade Set-up: E: S$0.67 S: S$0.605 T: S$0.75 / S$0.85 R/R Ratio: 1.23x / 2.77x

Security Name RS 13 MA Short St 144 MA Long St FTSE ST MARITIME INDEX 7.5235 7.1263 0.3972 6.3443 1.1792 Strongest FTSE STI FINANCIAL 27.7491 27.5643 0.1847 27.0803 0.6688 STI FTSE STRAIT TIMES INDEX 100 100 0 100 0 FTSE STI CHINA 7.1941 7.2575 -0.0634 7.0744 0.1197   FTSE STI ALL SHARE 24.351 24.4322 -0.0813 24.4817 -0.1308   FTSE STI BAS MAT 3.3709 3.4735 -0.1026 3.4634 -0.0926   FTSE STI OIL&GAS 11.4362 11.59 -0.1537 11.6266 -0.1904   FTSE STI SMALL CAP 12.549 12.7031 -0.1541 13.0097 -0.4606   FTSE STI UTILITIES 11.4784 11.6434 -0.1651 12.2161 -0.7377   FTSE ST CATALIST INDEX 15.8444 16.0181 -0.1737 15.9828 -0.

NASDAQ is trading at All-time high and what's this means for the Singapore Technology Sector. Do join me on 16 May 2017, 7pm at SGX Auditorium to hear my views on the sector and opportunities in the sector. For some who missed the recent SGX Symposium 2017, I will also be presenting again some of the core principles of my Wyckoff Method and also on the benefits of having Market Depth. For Registration, please click onto the following SGX announcement. 

ST Engineering (S69): Mark Up Phase   Technical Observations: ST Engineering traded in consolidation for the whole March and April, we currently seeing the stock marking up gradually. We place the 1st Target at S$4.00 in view of whole number effect and previous resistance, with 2nd Target at S$4.20. Recent Geopolitical events may spur governments to increase their defence spending which may boost ST Eng Defence Division, Global e-commerce and SG Smart-City vision may also potentially give its electronics division a lift. ST Eng will announce its earnings on 12 May, Upside Surprise?   Probable Trade Set-up: E: S$3.85 S: S$3.73 T: S$4.00 / S$4.20 R/R Ratio: 1.25x / 2.92x

Security Name RS 13 MA Short St 144 MA Long St FTSE ST MARITIME INDEX 7.5235 7.1263 0.3972 6.3443 1.1792 Strongest FTSE STI FINANCIAL 27.7491 27.5643 0.1847 27.0803 0.6688 STI FTSE STRAIT TIMES INDEX 100 100 0 100 0 FTSE STI CHINA 7.1941 7.2575 -0.0634 7.0744 0.1197   FTSE STI ALL SHARE 24.351 24.4322 -0.0813 24.4817 -0.1308   FTSE STI BAS MAT 3.3709 3.4735 -0.1026 3.4634 -0.0926   FTSE STI OIL&GAS 11.4362 11.59 -0.1537 11.6266 -0.1904   FTSE STI SMALL CAP 12.549 12.7031 -0.1541 13.0097 -0.4606   FTSE STI UTILITIES 11.4784 11.6434 -0.1651 12.2161 -0.7377   FTSE ST CATALIST INDEX 15.8444 16.0181 -0.1737 15.9828 -0.1385   FTSE

It was a wonderful experience sharing with the trading community on my market methology and also my recents successful trades which I've posted on this blog. I've shared during the syposium that it is paramount to understand the market structure before operating short-term trading. Only with that knowledge, you will be able to trade in harmony with the market, along side with the Smart Money.

Sheng Siong (OV8): Mark Up Technical Observations: The stock entered into re-accumulation after a mark up from S$0.96 level. In recent days, we are seeing consecutive days of increasing volume which may signal upcoming Mark Up. Aggressive traders can consider entry at current level. Conservative traders may like to wait for Line change at S$1.005. Probable Trade Set-up: E: S$0.995 S: S$0.97 T: S$1.045 R/R Ratio: 2.0x

SIA Engineering (S59): Mark Up Technical Observations: SIA Eng entered into a phase after Mark Up earlier in Jan 2017 period. Stock broke out on 28 Apr. This signals possible excess demand which may see the price mark towards S$3.90 zone, a previous resistance of the stock. With headline news from Bloomberg reporting that parent company, SIA is in a record plane-buying spree, which may translate to possible record new business for the aircraft maintenance company. Probable Trade Set-up: E: S$3.75 S: S$3.64 T: S$3.90 RRR: 1.36x (Low-end)

Security Name RS 13 MA Short St 144 MA Long St FTSE STI CON SERV 25.5675 25.3381 0.2294 25.3558 0.2117 Strongest FTSE ST REAL ESTATE HOLDING & DEV INDEX 27.4623 27.26 0.2023 25.3503 2.112 FTSE STI FINANCIAL 27.5499 27.4503 0.0996 27.0523 0.4976 FTSE ST REAL ESTATE INDEX 25.4336 25.3475 0.0861 24.7008 0.7328   FTSE ST MARITIME INDEX 7.1776 7.0969 0.0807 6.2999 0.8777   FTSE STI MID CAP 23.2289 23.184 0.045 23.4751 -0.2462   FTSE STI FLEDGLING 25.9199 25.9028 0.017 25.2843 0.6356   STI FTSE STRAIT TIMES INDEX 100 100 0 100 0   FTSE STI CHINA 7.2856 7.2882 -0.0025 7.0635 0.2221   FTSE ST REAL ESTATE INVESTMENT TRUST 24.2974 24.3053 -0.0079 24.