Trade Opportunity: Short or Long Genting Singapore PLC?

It seems the bear is taking over the bull in Genting SP (G13.SI) share price. It crossed over the 50d MA line (Green line) and the MACD is losing momentum. Is it time to short or long Genting SP? There are many factors to consider. I would say you keep this stock in your watchlist, once the MACD breaks below the 0 line and volume is high enough, you can short it all you want. But be careful, if STI is still on the uptrend, make sure you short it short term.

But let say if the price enter back into the region between 20d MA and 50d MA, you might want to long the stock. Make sure to check other indicators before choose to long or short Genting SP.

I will be updating on Genting SP soon, stay in touch. :)

Disclaimer

The information displayed here may not be suitable for your financial needs or goals and is intended for general information only. The TradeVestor will not be held liable for any loss caused by or arising through any inaccuracies or incomplete information shown on these pages.

Trade Opportunity: Genting Singapore PLC (G13.SI)

“Genting Singapore PLC, an investment holding company, develops, operates, and/or markets casinos and resorts internationally. It also engages in online gaming operation; provides management, information technology consultancy, data centre, and other services; involves in the research and development of software; and provides loyalty programmes management, tour promotion, and sales and marketing services to leisure and hospitality related businesses. In addition, Genting Singapore develops and operates district cooling plants; develops, produces, and distributes television programmes; and involves in property business. The company was formerly known as Genting International Public Limited Company and changed its name to Genting Singapore PLC in April 2009. Genting Singapore PLC was incorporated in 1984 and is headquartered in Singapore, Singapore. Genting Singapore PLC is a subsidiary of Genting Berhad.” (Business summary from Yahoo! Finance)

Daily chart, April 2010 to October 2010

The recent Resort World Sentosa sends the share price higher and higher into an uptrend. On 1 October 2010, I spotted a good trading opportunity for Genting SP. After bear took over on 22 September 2010 and the share corrected for 2 weeks crossing over the 20 day Simple Moving Average (SMA).

On 30 September 2010, it caught my attention as it is cross the 20d SMA, at the same time the CCI indicator is below -100. This is one of the systems I use to trade in the market. In order for us to trigger the buy, the stock cannot go below the 50d SMA, but we do not have to look at the CCI anymore. Once the price crosses above the previous day high, it is a buy signal.

On 1 October 2010, this is clearly the case. Make sure you set your profit target, stop loss and time period. Happy trading! :)

Disclaimer

The information displayed here may not be suitable for your financial needs or goals and is intended for general information only. The TradeVestor will not be held liable for any loss caused by or arising through any inaccuracies or incomplete information shown on these pages.

Trade Opportunity: Hewlett-Packard Company (HPQ:US)

Hewlett-Packard Company is an American multinational information technology corporation headquartered in Palo Alto, California, USA. HP is one of the world's largest information technology companies and operates in nearly every country. HP specializes in developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services… read more from Wikipedia.

5 year Chart of HPQ (Click on image to enlarge)

I believe most of you know about the sex scandal revolving Mark Hurd, the CEO of HP during early August which sent the price from $54.75 (52 wk high) down to the current price of $39.19 (around 52 wk low). Down by around 28%. Soon after that, he stepped down as CEO.

The news that brought the price down to its lowest this year after the 2008 financial crisis is actually short-term news. And short-term news is a good buying opportunity as we know that the news will not affect the company in long-term. Read here to learn how to differentiate long-term and short-term news

Fundamental Analysis

Honestly speaking, you don’t really have to bother much about fundamental analysis in the case of trading on short-term news. But it doesn’t kill to know a little?

I am using HP Probook right now and I am very happy with it. Its fast, don’t weigh a ton and the customer service is quite decent. Many of us know or at least heard about the brand, HP. This clearly shows that HP has a strong brand recognition.

This company also has been consistent in their dividend payout. Also, HP posted an 11% revenue jump and a 6% profit increase for its fiscal third quarter. The PE ratio of HP is now 10.91 which tentatively mean it is undervalued. And the ROE is 20.54%, which is considered attractive (more than 15%).

Technical Analysis

2 month Chart of HPQ (Click on image to enlarge)

From the chart, you can spot multiple buy signals indicated by the yellow circles. The price fell after the resignation of Mark Hurd and touched the support line on 27 August. I believe the price is going to head back to the resistance line and that’s your sell signal before plunging down again. And then, I speculate there is a possibility that the price might break below the support.

Conclusion

I would say HP is a good buy at the moment. Sell it once it hits the profit target of around 42 (resistance line). I don’t recommend you short sell it along the way down. But once it breaks the support line, another good buying opportunity emerges.

From the fundamental, you can also buy and hold it for long term. There is a high possibility that HP will eventually go back to their high.

Disclaimer

The information displayed here may not be suitable for your financial needs or goals and is intended for general information only. The TradeVestor will not be held liable for any loss caused by or arising through any inaccuracies or incomplete information shown on these pages.