Marubozu - My Stocks Investing

ST Engineering: Upside Limited

Post author:Marubozu
Post published:July 17, 2010

ST Engineering upside is limited base on current chart pattern. This stock has been moving sideway between $3.00 to $3.30 from Dec 2009 until now. $3.30 proved to be a tough resistance to break and the upside is also limited by the support turned resistance of the uptrend line. Unless there is a breakout with huge trading volume, the downside risk is much higher than the upside potential. $3.00 is the very strong support level. In addition, with current PE of 22.12(the highest of the past 4 years) and the dividend yield of 2.146%, ST Engineering is not a really attractive investment choice for me.

Singapore Airlines (SIA): Forming a Right Shoulder

Post author:Marubozu
Post published:July 17, 2010

SIA seems like forming a Right Shoulder. The neckline is at about $14.30 which is also 78.6% Fibonacci Retracement Support level. 20D, 50D and 200D MA are all congested at about $14.50 region. Breaking below the neckline will confirm a Head and Shoulder pattern and SIA may go down to $12.00.

Best World – Beware of Reversal

Post author:Marubozu
Post published:July 15, 2010

Best World’s chart is redrawn after issuing Bonus 1 for 5 Shares on July. There is a dilution effect and thus previous price history were adjusted down. Best World is still trading in a Wedge pattern but today trade see a Doji candlestick, indicates a stop of the recent up trend. Coincidently, this Doji candlestick appears at the resistance of the Wedge pattern. In addition, Stochastic and RSI are in Over Bought region. Base on this observation, there is a tendancy that Best World will reverse the trend and head south in the next few trading sessions.