Short Term Trading Idea on Yangzijiang Shipbuilding BS6 9 Dec 2016

Yangzijiang Shipbuilding (BS6 / Daily Chart)

*This idea is to trade on the higher possibility of advancing share price. I highly recommend clients to have stop loss when doing trading.*

Cup and Handle formation spotted. It is a bullish continuation pattern.

(Details on formation: http://www.stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:cup_with_handle_continuation)

Comments: Stock seems to trade with support of 14 days Moving Average (Indicated by Thin Red Line). If the 14 day Moving Average crosses the 200 days Moving Average (Long Term, Thin Green Line), it will have high chance of trading at a even higher price. This is even better if coupled with higher trading volume.

Short Term Price Support: $0.86
Next Price Support $0.83

Resistance Price: About $0.93
Suggested Entry: $0.83 – $0.86

Target Profit Taking Price: $0.93 & Higher (6.70% Profit, with entry at $0.86)
Time Frame: 2 weeks – 1 month
Suggested Minimum Trade Size: 5000 shares (About $4.3K)

Risk Level: Mid
Stop Loss: Once the share price breaks below $0.83 (5.36% Loss, with exit at $0.825)

*Chart at 12pm*

Yangzijiang 5 April 2016 *Updated 13 April*

*Update 13 April 2016*

Charting for own reference. Note to self. could have set higher entry instead.

5 April 2016 Post

To have better risk management, it is important to have stop loss for trades.

Trendline: Might provide support as I am seeing higher lows forming
Stochastic: Approaching oversold region

Entry: 0.915 – 0.92

1st Target: 0.96
Profit: 4.3%

2nd Target: 0.98
Profit: 6.5%

Stop Loss: 0.885
Timeframe: 2 weeks

STI Inclusion + Exclusion

SGX announced that UOL Group, Yangzijiang Shipbuilding Holdings and SATS will replace Jardine Matheson Holdings, Jardine Strategic Holdings and Olam International as constituents of the Straits Times Index (STI) following the conclusion of the semi-annual review.

The STI reserve list, comprising the five highest ranking non-constituents of the STI by market capitalisation, will be (in order of size) CapitaLand Commercial Trust, Singapore Post Ltd, Suntec REIT, Keppel REIT and M1.  Companies on the reserve list will replace any constituents that become ineligible as a result of corporate actions, before the next review.

All changes from this review will take effect from the start of trading on 21 September 2015. The next review is scheduled for 3 December 2015.

Related links:

http://sgx.com/wps/wcm/connect/sgx_en/home/higlights/news_releases/UOL_Group_Yangzijiang_Shipbuilding_Holdings_SATS_to_join_STI

http://www.straitstimes.com/business/companies-markets/shares-of-new-sti-component-stocks-uol-yangzijiang-shipbuilding-and-sats