Jardine Cycle & Carriage is currently forming Wave A of Elliott. Jardine C&C rebound from the 200D MA support and looks like starting a Wave B. If this is true, the next resistance is at about $43 (20D MA) and $45 (50D MA). Looks like upside is limited and the downside risk is very high just imagine how the Wave C looks like.
Hi,
Jardine C&C has dropped to the price level of $35, on 25th August 2013.
I can see the trend is downtrend and the price may fall further.
I can see the strong support at $30 zone, do you see this is good invest opportunity to long Jardine C&C ?
The highest level it can go up to $56 sometime back before May 2013.
The profit margin can be attractive if can long at $30 – $35 and sell at $50-$55 zone, just for 1 lot, can profit over 15K.
Do you have any comment on this counter ?
STI is on bearish trend so be cautious when you want to long any stocks. UOB and OCBC broke support yesterday, and very likely STI will fall further. So, Jardine C&C is not for long term play but can long the stock short term when rebound from $30 the previous support. I will not trade this stock as the current chart pattern does not meet my trading rules:
1. Never short at low (stock price is low)
2. Never trade counter trend (trend is down but potentially rebound)
3. The stock is illiquid so technical may not be reliable.