This is good to see March CPO to drop RM39 to RM3083 now. Perhaps it has some room to come down amid the stockpile and also weakening of USD.
Next from my fren counting will be RM3,068 support and also RM3,005/RM2,972 if breakdown further.
Let say I am waiting for Sime Darby to retract from its high it should find its support at RM8.31 (middle Bollinger) which I can expect Sime-C8 at RM0.170 in bottom price.
Step by step let see how USD and Sime's undisclosed catalyst go on.
Some Highlights: "Secondly, and more importantly for institutional holders such as PNB, shedding off unprofitable businesses and raising funds from spinoffs will improve the groups’ dividend payout capabilities."
"In addition, the newly spun off or consolidated businesses would emerge as leaner entities with strong cash flow generation, which could see higher cumulative dividends from the segments"
"The recent strong recovery in crude palm oil (CPO) prices presents a window of opportunity for a major corporate exercise involving Sime Darby Plantations (SDP), which contributes about a third of Sime’s total revenue and net profit during its 2016 financial year."
hi ming, as a trader how wud u play this counter ? of course, firstly we have to identify the type of play (1) momentum (2) swing or (3) position yes ? in terms of momentum, is it a good time to enter when (a) price has reached a congested area the yellow box (b) AO indicator showing negative divergence (c) resisted by inner UTL (upward trend-line) and pullback ? as for swing, it's a definite no-no cuz price is now trapped in a condensing channel .. lastly, is it a safe entry now for position traders to buy and keep cuz the condensing pattern may break up (in this case hooray !!!) or down (in this case .. buy more at lower price ???) .. let's not talk about insider info which some are privileged to have or even news cuz a lot of traders don't trade news but pure charts .. what is a better strategy to approach this baby ? thanks so much ming
Call me Ming Jong lah...haha...Ming seems like back to Australia where my colleagues/friends called me, lol...
a) I think it is better to trade the breakout from the little triangle that you have drawn. b) No idea about AO indicator. But a divergence does not mean it will correct down. Losing momentum via consolidation within the triangle can be the objective too. When it breaks up, I am sure it won't be divergence. c) I won't be too concern on the inner trendline. It is bullish bias at the moment.
For traders, the main concern will be where to place your stop loss, i.e. at what point do we admit our mistake and bail out first. I believe trade management, risk management and exit are far more important than the entry and account a lot more for trading success.
Sometimes, I do like to buy some during the consolidation period because it shows a bullish bias. When it breaks up, I will add more position.
@abangadik, For trading, I only average up instead of down. So no adding for me if dropping.
hi MJ, oh yea i do think the current market structure is more suitable for breakout traders :- 1) momentum traders wud have hopped on the high speed train on 4-jan using LTF chart and taken profits when they saw the 3 confluence factors highlighted earlier ! 2) swing traders have nothin' to swing even on LTF with current pattern ... condensing symmetrical triangle is nightmare for swing traders 3) position traders ... hopefully there is no squeeze from the big boys ie fakeout & stopout all those who enter too early and then only unveil the mark-up stage :)
once again, many thanks for your reply .. look forward to more fruitful discussion with MJ in the future :) happy sunday !
Jz friendly n humble note. Do not only apply TA in Sime. Would be good to incorporate with psychology analysis to read the buyer n seller intention. Since they unlock value we should unleash our skills too.
Gong Xi Fa Cai. Had wonderful discussion with you always
恭喜发财! @稻田·* 粒粒芳香 Thanks for your friendly note :) 小弟感激。 Did you mean the volume as you mentioned "如您有注意到股价在一月九号过后就一直出现大户转手。这其中最多出现在RM8.50/RM8.45/RM8.59/RM8.54", including today's 8.72?
KUALA LUMPUR: CIMB Equities Research keeps Sime Darby on its Add list with a higher sum-of-parts target price of RM9.80 due to its plans to unlock value and its better earnings prospects in view of higher crude palm oil (CPO) and coal prices in the future quarters.
Sime Darby plans to spin off its plantations and property businesses in separate listings on Bursa Malaysia, while the trading and logistic businesses will remain under Sime Darby Bhd, which will retain its listed status.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Tom
2,984 posts
Posted by Tom > 2017-01-09 20:57 | Report Abuse
wow, Ming Jong Tey and duit 成为拍档?