|
| Thursday, September 06, 2007 |
| My views on ChipEngSeng |
This is from a technical point of view. And i will try as much as possible to draw conclusions from the charts.
Firstly, ChipEngSeng closed at its lowest on 17th August at $0.65. and closed at its highest on 3rd September at $0.905. That is a 39.23% recovering from its low. Volume in general has gone up in tandem with the price. This means that concentration of buyers is higher than that of sellers.
Deductions: In times of uncertainty like now, investors/traders would have taken the sub-prime risk into considerations. The major retailers left in this market are most probably savvy day/short term traders and/or long term investors who believe that the subprime risk will not affect the business of the company drastically.
Thus the rapid recovery could be pointed to the fact that these people find this a good stock to go into. To me, that is a good sign that it is resilient. However, the huge volumes would suggest that contra-players might be in place and volatility of the stock IS to be expected.
Secondly, It is resilient. Looking at the weekly indicators (5w,12w,26w EMA), the 12w EMA was barely even close to the 26w EMA.
Deductions: Though EMAs, especially those of longer time horizon are lagging, it is useful in filtering out the noise. It goes on to show that long term wise, it is going in the right direction
My views: After rising so much since the low, whats the fuss about the retracement? Surely you don't expect share prices to rise everyday right? For now, I think we wont be able to expect share prices to keep cheonging like no tomorrow. And it is clearly indicated by its ATR. In fact almost all the stocks I hold belong to the highly volatile catergory, (STI ETFs, Lyxor China H, MMPReits being the exception). I have set my cutloss of Chip to be at $0.80 and I think it is reasonable considering the situation now.Labels: ChipEngSeng |
posted by Nenix @ 10:07 AM   |
|
|
|
|
| NenixDreams Fund |
| Fund launchprice on 1st August 2006= $1
Target for 2007 = Beat STI index
Current price of NDF as of 1st Oct 2007 = $1.58
Current price of STI as of 1st Oct 2007 = $1.54
Difference with STI index is 0.04
|
| Links |
|
|
| Tools that Generate Passive Income |
|
| Previous Post |
|
| Archives |
|
|
