Saturday, July 20, 2013

First Resources: A Short Term Opportunity To Short?

19 JULY 2013
First Resources: A Short Term Opportunity To Short?
By Robin Han

First Resources (FirstRes) was in a strong downtrend for the past two months but it managed to rebound recently. However, from the weekly chart, we can see that the share is still in a clear downtrend.

Besides, we can see that the resistant trendline is quite significant. In addition, after a rebound from 1.65 to 1.735 over the past three days, the stock is currently quite overbought and has a short term risk now.

A stock usually does not change from downtrend to uptrend suddenly. One may consider shorting on strength during rebound as we can expect the stock to have a pull back thereafter. FirstRes released its quarterly report on 14 May, therefore it is not likely to release another financial report before August that would bring sudden uncertainty to the technical chart pattern.

Do take note that this trade is for the short term. The stock may turn uptrend after the pull back we are planning to trade.

Weekly Chart Of First Resources

Daily Chart Of First Resources

Publish date: 19/07/13

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Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
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高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

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There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
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