UOB ( $15.83 ) - Short Setup
The Market
The STI closed below 2,680 today - a support level that has defended well the past two days. The index is now 29 points away from a critical support at 2,643. Once this level is breached, a new lower low is formed where it is likely to retest Oct 5 low at 2,523.
An upside breakout to 2,790 is required to invalidate the bearish view.
UOB ($15.83) - Short Setup
UOB buck the trend today and gained $0.14 to close at $15.83. The closing price is a doji candle touching the 40 MA and downtrend line. CCI is overbought. If the market is down tomorrow, this counter will be an ideal candidate to go short.
Trading Plan:
Short entry : $ 15.70
Stop loss : $ 15.95
Target : $ 15.20 (50%) / $ 14.75 (50%)
Risk / Reward Ratio : 35 cents / 70 cents**
** average of $15.2 and $14.75
Update For Past Posts:
GOLD: It looks like Gold has chosen to breakout from the wrong side of the symmetrical triangle
CityDev: The trigger at $9.11 was not reached so no trade was taken. Note that the trigger price was intentionally placed at 1~2 bids above previous day high instead of the last closing price to ensure the bull has conviction. Same goes for UOB above, the trigger price is 1 bid below the previous day low ( not the closing price ) to ensure the bear has conviction.
Labels: Market Direction, Stock Pick
posted by Market Wizards @ December 14, 2011
