Raffles Education – Bounced back from the Channel Support?

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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%
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Synear – end of the trend and move into consolidation phase

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Synear closed with a short black candle today at $0.33. I have to abandon my swing trading plan on this stock because the trend has ended and the stock price now enter into consolidation phase and move sideway. Synear does not meet my Value Investing criteria and I have removed Synear from my watchlist.

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China Zaino – another S-chip stock is swinging in the channel!

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Spotted another S-chip stock China Zaino besides Synear and China Hongxing. The patterns for these three stocks are very similar (had breakout and swing inside the up trend channel). China Zaino’s fundamental is pretty solid and can be kept as value investment. My strategy for this stock is to buy some for long term investment and some for short term momentum investment. Target entry point is $0.28 and exit point is $0.335 (about 20% profit target).  Next strong support is $0.27 (61.8% Finonacci Retracement level).
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