Raffles Education – Bounced back from the Channel Support?

Raffles Education closed at $0.445 on Friday and formed a Bullish Harami candlestick pattern. Coincidently, the stock price bounced back from the $0.435 supports level (38.2% Fibonacci Level and Channel Support). If next session opens with a gap up and closes with a bullish long white candle, a Three Inside Up pattern is formed which confirm a trend reversal.

Another thing to take note is there were Insiders Trading for the past three months. The substantial shareholders were increasing their shares holding. Mr. Chew Hua Seng is the Chairman & CEO, Ms Doris Chung Gim Lian is the spouse of Mr. Chew, Mr. Henry Tan Song Kok is the Independant Director.

The analysis shows it is rather safe to trade at this price level due to the following reasons:
  1. Strong Support (Channel Support and Fibonacci Level) base on the chart.
  2. Bullish Harami candlestick normally either moves sideway or upward (trend reversal)
  3. Price of Insiders’s transaction between $0.475 to $0.55.
Thus, the downside probability is minimal.
My Swing Trading Plan:
  • Entry Level $0.44 to $0.46
  • Profit Target = 10%

StarHub – Trend Reversal?

StarHub was on a free fall for last few trading days. Yesterday StarHub closed at $1.93 with a bullish harami candles formed. This pattern implies a pause in a down trend and is a realiable signal for a possible change in sentiment. The down trend may have stopped and the StarHub may move sideway or reverse the trend. Next session candle is important to confirm the subsequent movement. If next Monday StarHub opens with a gap up with increase in volume, a Three Inside Up pattern is formed which confirm a trend reversal.

 
 
StarHub looks very bearish and the stock price is below 20D, 50D and 200D MA. 20D MA crosses down 200D indicates strong down trend momentum in the short term. The sentiment is bad towards StarHub after losing the EPL right to SingTel and the downgrade by analysts. I am avoiding StarHub for the time being until everything is stabling down. Although the dividend yield is attrative (ex-dividend payout date in mid November), I have to be careful that I may lose more money in the stock price than the dividend payout. StarHub’s share price will probably move into consolidation phase before deciding the next move. I don’t want to put my money in StarHub and get my money stucked there long term.
 
Key indicators to watch:
  • Next immediate resistance at $1.94 and critical support at $1.83. Can StarHub break the resistance and hold above these critical supports?
  •  When can 20D MA crosses up 50D and 200D MA?