STI moves 2.09% as Olam, Genting finishes top and bottom
- Olam finishes first half of 2014 at top of table with 68.63% gain.
- Genting Singapore drops to bottom with a half year loss of 10.14%.
- Straits Times Index makes very little progress as it it capped by overhead resistance.
It is is not a coincidence that Olam is making new 52-week highs while Genting is at 52-week low. Here is a 4-point mantra to go along:
1. Stock, indices and forex pairs that are at 52-week high are strong (if they are weak, find them at low, not here)
2. Since they are strong, expect them to continue to be strong (best time to ride the trend).
3. Do not short 52-week high simply because your gut tells you to.
4. Short only if you are convinced that there is a reversal chart pattern and/or price fails to penetrate after multiple tries.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.