WASEONG (5142): Is the Giant Awakened?

Hi Readers,

First of all, thank you for the private messages and I am happy that you are making huge gains from Waseong (5142) which we have posted back in Mar'2019 [Sleeping Giant: WASEONG (5142)]. This marked the second oil and gas sector counters after Dayang that you have made huge gains. Everyone is excited with Waseong and wanted opinions on what's next specifically Is the Giant Awakened?

Recap of the strategy in Mar:

To add positions if Waseong closes the gap down above $0.88 cents and $0.81 cents becomes the support or stop loss level. Additionally, to keep Waseong holding price below $1.00 for long term. Continue to add whenever Waseong is awarded new contracts resulting in increase of book order; total book order showing increased trend reported by end of each quarter

As we have spent sufficient details in analyzing its fundamentals and financials, I will not go through it again. I have briefly checked it and there is no changes to its fundamentals as is. Hence, I will be looking from the technicality and price actions perspective. 

Image 1: Waseong Price Actions

As shown in Image 1, Waseong has rebounded strongly with high volume for the last one week from the low of $0.60 (tripple bottom) to close at $0.855 cents yesterday. What I am seeing right now it is attempting to close the previous gap down and moving towards its previous high around $0.90 cents (red circle).

As it is approaching the previous high after one week of strong movement, there is a possibility that we should see profit taking. Additionally, there is no announcement of new contracts awarded thus far and current movement could be due to (1) undervalued (2) oil and gas theme which is at play. As such, below are the few strategies that can be adopted:

1. Riding the trend:
• One can choose to exercise partial zero cost averaging to lower down your average
• Sell a portion of it as such that your average is below $0.72 cents to $0.60 cents
• If it retraces to $0.755 to $0.835 range or new contracts announced, you can add positions again using the fund that you have sold earlier
2. Locking in Profit
• One can choose to exit positions if the gains is sufficient for you. Once you have exit it, you must not feel bad for selling earlier if it continues to go up or happy if it goes down. Your emotions should be kept at bay. 
• Re-initiate position if there is contract announced over the next few months and using risk/reward ratio with the levels above as a guide
3. Long term position:
• One should consider to lock in some profit to generate cash flow and lowering your average price further. 
• This step is important as no stock will continue to go up everyday and when there is a pull back or corrections, your emotions will be affected greatly which defeats the purpose of our journey here - TIME with family.
• Add position again if there are contracts announced over the next few months and using risk/reward ratio with the levels above as a guide

Is the giant awakened? I would say the giant is stretching after a long sleep to loosen its muscle 💪Until new contracts announced and price stabilizes above $0.88 cents, then, the giant is fully awaken and heading back to its previous high of $1.70. 

Good luck and all the best!!!

Disclosure: The information above is for sharing purposes without any understanding of investment targets and needs of readers. References to the price movements is informational based on my analysis and data obtained from sources believed to be reliable at the point of writing. Please do your own due diligence as this article is not a recommendation to buy/sell.