OCBC

OCBC (O39): Swing Trade
Technical Observation:
 The stock pulled back since forming a high on 8th Dec 2016. The trading volume softens as the stock price came down; technically low volume selling signifies a pull back, instead of a trend reversal. S$8.85 level is a significant support level in view that it’s a support-turned resistance level coupled with Fibonacci 50% retracement level.

Thus, we are seeing a good probability of price rebound towards next immediate resistance at S$9.10.

As the stock continues to trade in the consolidation phase, swing trade with tight stop and target price is preferred.

Probable Trade Plan:
Entry: S$8.92 Target: S$9.10 Stop: S$8.84 (RRR: 2.25x)

Similar Occurrence on:
19/06/2009, 25/11/2010, 08/03/2012,
30/12/2012, 15/01/2013, 05/09/2014

Popular posts from this blog

Wyckoff's Law of Effort

Image
Law of Effort Wyckoff's Law of Effort states that on any single trading day (or week depending on time frame), huge volume (effort) push by participants should see huge price movement, resulting in a wide spread (long body). This is a basic principle of effort and result. However, as per Singtel's case study, we saw huge selling volume on 11 May, yet the price action only shows a narrow spread (small body). This divergence of effort and result in Wyckoff's Law of Effort principles, indicates possible exhaustion in selling or hidden buying. Thus, with a lack of weakness, Singtel should continue trading range bound for the coming days or weeks till further strength or weakness is observed. Swing Traders who trades range can consider positions at 3.70-3.72, with exit target 3.76-3.78.
Read more

Bullish Case for Bitcoin

Image
BTC Exhibiting Signs of Accumulation 1 year after BTC price plunged from its US$20,000 high to a recent low of US$3,215.20, now we are seeing technical evidence of  accumulation by the smart money is in progress . Above is an illustration of Accumulation Zone of the Wyckoff Price Cycle. We are watching very closely for price to cross the creek (est. US$4200 level).  A break above the level, we deem that price has proceeded into the Mark Up Phase with 1st objective at US$5,800. If creek is not crossed, a break below US$3,190 will falsify our Accumulation zone analysis. Join us in our FREE Introduction to Richard Wyckoff Seminar to learn more about the method and how the method add value to your market timing analysis.
Read more