Overall plantation sectors has been on a bull run since Dec'18. Back in Dec'18, the overall plantation sector index challenged its previous low in Oct'11 and Aug'15. Each low back then is followed by a strong rebound and history repeated itself again in Dec'18. How would we tap into this cycle then?
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| Historical Plantation Sector Index from 2011 to 2019 |
As the plantation sector index continues to move higher, a rising wedge formation is building up at the same time. Hence, there is high possibility that corrections is happening soon. Watch for corrections downwards at the two levels indicated in the arrow below.
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| Closer view of the current plantation sector index |
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| FGV Daily Charts |
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| JTIASA Daily Charts |
FGV:
Entry: $0.90 cents to $1.03 range
Exit: According to your rate of returns / $1.35 / $1.575
Stop Loss: Below $0.90 cents (below 50 days MA)
JTIASA:
Entry: $0.54 cents to $0.60 cents
Exit: According to your rate of returns / $0.65 / $0.825
Stop Loss: Below $0.54 cents (below 50 days MA)
You can use the levels in the chart and risk / reward ratio to determine your trade setups. Identifying your rate of returns upfront will help to determine your exit target instead of relying on target profit.
Disclosure:
I/we have no positions in any of the stocks mentioned above. The above information is for sharing purposes and please do your own due diligence before buying.
JTIASA gap down due to negative QR. Recommendation is to wait until reversal before initiating a position. Current pricing is below all key SMAs of 20, 50 and 200 days.
ReplyDeleteFGV retraced to the low of 1.08 before rebound to 1.19 closing above its 20 days MA. Will continue to wait until further retracement to target entry price.
JTIASA will make an attempt to go above its 50 days SMA at 0.55 cents. If it is successful, it is a reversal sign and 0.54 cents should be the stop loss level.
ReplyDeleteGood luck and all the best.
+8% on this counter. Appreciate the analysis, Thanks.
Deletecongrats @ehooi. it was your decision to enter as I am just sharing my opinions. Do follow your own rate of returns or the levels above.
DeleteGood luck and all the best!!!
Congrats to all that bought JTIASA. Closed at $0.585 last Friday. By now, you are sitting on top of 8% gain. By the time it reaches $0.65, you will have pocketed a 20% gain. You can either choose to exit based on your rate of returns or follow the levels above. Please stick to your entry/exit plan.
ReplyDeleteAs for FGV, it did not hit the entry level. Hence, no decision needed. Even if it continues to move up, I will take it as an opportunity missed which is ok as there are a lot more counters to trade.