dchua1969

dchua1969

We see from the weekly chart that the triple top formation (bearish in nature) is playing out now that the price point has broke down from 64,723 level. I have indicated 3 profit taking levels and think the risk to reward ratio is pretty good given the high points that we are shorting now. Please DYODD

dchua1969

From the 4h chart, we can see that it has broken down from the bullish trend line (green dotted line) and is now hovering in the triangle zone. This can either go back to the support turn resistance line at 1.110 and goes sideway for a while before continue its descent. It could also heads further south from the triangle zone without any pullback so if you are...

dchua1969

Now, let's use this stock , 388 as an example. From 2021 to Sept 2024, it has been on a downtrend for 3 over years......... If we rely solely on the RSI indicators which states that sell when it is over 70 or buy when it is 30 or below then , one would be in deep trouble. The simple trend line is more meaningful and accurate as one can see from the chart....

dchua1969

Now, when we analyse the same stock from a longer time frame, suddenly the long spike up does not look as scary anymore. Upon closer examination, one can see clearly that the price has been range bound since Nov 2021 which was the covid period. Haidilao famous for its restaurants hotpot was badly hit since people are stucked at home. Fast forward to...

dchua1969

Oh no........the stock has gone up like an arrow, it looks so scary........can buy or not ?

dchua1969

Using one of my favourite stock as an example, we can see from the weekly chart that price has gone up by 42% from the low of 190.6 which was the first buy zone. Second buy zone was at 264 price level and the third price was at 348. We can witness the 4th buy zone soon after it breaks above the resistance at 458. As it is a week long holidays in China, the...

dchua1969

When we take a step back and look at the weekly chart, a lot of things suddenly become much clearer. First , we see that there was resistance at the 59,940 price level and in 2021, it created a fake breakout to trap even more buyers ONLY to slam on them hard for the next few years.........crashing the price to as low as below 15,000........ Fast foward to today,...

dchua1969

When I draw chart like this, many will regret not buying at the low of 0.634 price level. The point I am making in this chart is it is not always possible to predict the bottom but on hindsight now that the price action has formed a pattern that it becomes clearer...... Don't beat yourself up for not scooping it up at the ultra bottom but more importantly , are...

dchua1969

I posted my prediction about shorting the USDCNH pair sometimes in November last year....... Please read it here This is an update of that post...... After breaking down the important 7 dollars price point, if the sell down continues which I believe it will, then the next 2 support level is 6.71 and 6.83. How long will it takes ? I don't know but for those who...

dchua1969

Closer to home, we also witnessed an all time high for the Singapore stock market. The last time it hits 3573 price level was in 2007, almost 16 years ago............. With the banks taking up close to 50% of the index, it is also evident from the chart that DBS bank has been rallying 2016 till its current price of 37.60........ It could continue the rally and...

dchua1969

If you have no idea how to join the recent rally bandwagon of the China parabolic stock market, the 2800 ETF may be a good pick. Here , it shows you the top holdings of this fund where you are buying into the who's who in Hong Kong ! Some may prefer to stock pick and go for individual company like Meituan, Alibaba, Tencent ,etc , to each his own. I am vested in...

dchua1969

With more rate cuts coming up from the FEDs in the coming months, we can reasonably expect the big banks in China will follow suit as well. Already, the government is pushing stimulus for these banks to lend out more money by lowering the RRR. But, is it enough? Loans business remain sluggish in the 2nd largest economy. Read here It will take at least 12 -18...

dchua1969

Nobody knows until the next sets of data starts to roll in . With the upcoming Labour Day holidays, 1st Oct, it is reasonable to expect more Chinese will travel if not outbound , it will be inbound travel within the country. Hospitality , Food & Beverage sectors, entertainment, shopping malls should benefit from this holiday. We can see from the weekly chart...

dchua1969

Referring to the weekly chart, we can see a strong bullish candle piercing above the resistance line at 396.6. With the strong government measures benefitting all sectors (not Banks) , I expect the rally in Tencent to continue with more sales revenues coming in for Labour Day (1st Oct ) and Singles Day...... Let's wait for a good pullback and add more to this...

dchua1969

If you have not heard the news, please read here I think this is not the end of the stimulus but the beginning as the government is going all out to get the economy back ! Here , we can see that many companies are still suffering in the red with bankruptcies rate accelerating as well. Time is of essence as the GDP target of 5% is important to meet for the...

dchua1969

Rising tide move all boats , so we can see the much awaited news of China government releasing trillions of money into the housing market and encouraging banks to lend out even more money by cutting the reserve requirement ratio by 50 basis points. It was euphoric yesterday with HSI rallying more than 4% and all tech shares going up to the moon, much to the...

dchua1969

It's never too late to join the party. Just because you did not catch it at the bottom does not mean you are excluded from the party. Some parties last longer than expected and I think this EURSD LONG party has barely started........... Please DYODD

dchua1969

The long term bullish trend line is about to get broken down. Adding more shorts on this pair.