Genting Singapore: Where is the Next Price Target?

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Genting has broken the resistance at $1.30, gap up and closed the last trading day with a bullish marubozu candle due to much better earning than expected. Probably many of you will ask how high can Genting Singapore goes and what is the next resistance. Base on Fibonacci Retracement, the next resistance is $1.51 (123.6% Fibonacci Retracement Level), followed by $1.64 (138.2% Fibonacci Retracement Level). That is the beauty of Fibonacci as it can predict the next future resistance or support levels where there is no previous history to refer to. However, be cautious on trading Genting as the chart shows Parabolic Curve again! It happens before and it will happen again! History tends to repeat itself!

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Pacific Andes: Trading in A Symmetrical Triangle

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Pacific Andes is currently trading in A Symmetrical Triangle for a short term. Base on the chart pattern, it looks like Pacific Andes is going to breakout soon. Long term chart is still on an up trend. Fundamentally, Pacific Andes does not have any “wow” factory base on the financial result. Current PE of 16.1 is at its fair value but considered high compared to the past 3 years average PE of 9.1. Nothing fantastic financially base on FY2009 result:

  • Net Profit Margin = 7.6%
  • ROA = 2.2%
  • ROE = 4.8%
  • Current Ratio = 1.8

$0.305 is a significant level to watch. This is also a 61.8% Fibonacci Retracement Level and all three moving averages (MA). Breaking out from this Symmetrical Triangle will send Pacific Andes to either $0.35 (78.6% FR) 0r $0.24 (38.2% FR).

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China XLX: Trading within a Falling Wedge

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China XLX is currently trading within a Falling Wedge.  Base on chart pattern, current price is closed to wedge resistance. Unless there is a breakout, the price will probably drop in the next one to two months. However, current China XLX PE is about 20 which is over value and also much higher than average PE of 8 in 2007 and 2008. This high PE presents a very unlikely scenario of breaking out from the falling wedge and start a bullish trend.

Fundamentally base on financial report, this company not really fantastic. The following financial ratio is nothing to be proud about.

Base on FY2009 Financial Result:

  • Net Profit Margin = 5.1%
  • ROA = 4%
  • ROE =  8%
  • Current Ratio = 1.04
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