SIA - Short at Resistance Line

SIA is in downtrend and shorting at resistance line has a higher probability of making money.

As long as COVID-19 is still around, SIA will remain grounded and there is limited capacity for those Green zone business passengers between countries.

COVID-19 will benefit companies like Sheng Siong, Logistics, Semi-conductor, Gloves maker and Corona Vaccines maker.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

Ascendas Reit - The King of Industrial Reit

Ascendas Reit is the KING of industrial reit and Capitaland is its strong sponsor.

Wait for pull back to the trendline if you wish to ride the uptrend.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

Frencken - Bullish Trend Continue

Frencken is in the bullish semi-conductor industry and so does its share price.

Select stocks based on the current strong industry.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

Global Testing - Volume Increase and Price Breakout

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

ComfortDelGro - Obviously Not a Buy

ComfortDelGro on the chart is moving on a downtrend.  Obviously not a buy.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

UMS - Uptrend Continuous Flag

UMS had a uptrend continuous flag.

Current bullish play are still in Health and Tech contract manufacturer in SG.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

STI - Still No Clear Signal

STI still no clear signal as it still moving sideways.  It need to break the higher resistance or lower support to have clear direction.  Nothing much we can do except waiting.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

Mapletree Log - Wait for Pullback

Mapletree Logistics Trust is in a strong uptrend.  Wait for pullback to the trend line if you wish to piggy back on its bullish trend.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

City Dev - Bearish Flag

City Developments Ltd forms bearish "Flag" chart pattern Jul 24, 2020 Recognia has detected a "Flag (Bearish)" chart pattern formed on City Developments Ltd (C09:SGX-ST). This bearish signal indicates that the stock price may fall from the close of 8.260 to the range of 7.450 - 7.600. The pattern formed over 8 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis. Tells Me: The price seems to be resuming a sharp decline after taking a brief pause. A bearish Flag pattern occurs during a dynamic market decline, representing a brief pause as the market "catches its breath" before running off again in the same direction. The pattern consists of two parallel trend lines, often sloping upward against the prevailing downtrend, and is confirmed when the price breaks down through the lower boundary to resume the decline. This bearish pattern can be seen on the following chart and was detected by Trading Central proprietary pattern recognition technology.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

Riverstone - River of Monies

As long as COVID-19 continues, many rivers of money will be flowing into Riverstone.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

CapitaR China - Bullish Diamond Bottom

CapitaLand Retail China Trust forms bullish "Diamond Bottom" chart pattern Jul 23, 2020 Recognia has detected a "Diamond Bottom" chart pattern formed on CapitaLand Retail China Trust (AU8U:SGX-ST). This bullish signal indicates that the stock price may rise from the close of 1.280 to the range of 1.430 - 1.470. The pattern formed over 73 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis. Tells Me: The price seems to have reached a bottom, showing signs of reversal as it has broken upward after a period of uncertainty or consolidation. The Diamond Bottom pattern begins during a downtrend as prices create higher highs and lower lows in a broadening pattern. Then the trading range gradually narrows after the highs peak and the lows start trending upward. When the price breaks upward out of the diamonds boundary lines, it marks a significant reversal to a new uptrend. This bullish pattern can be seen on the following chart and was detected by Trading Central proprietary pattern recognition technology.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

Keppel DC Reit - Bullish Uptrend Continue

Health and Tech stocks are the sectors that are in the uptrend.

No need super knowledge, ride the trend but don't forget your stop loss.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

Delfi - Bullish Bottom Triangle

Delfi Ltd forms bullish "Bottom Triangle" chart pattern

Jul 22, 2020

Recognia has detected a "Bottom Triangle" chart pattern formed on Delfi Ltd (P34:SGX-ST). This bullish signal indicates that the stock price may rise from the close of 0.740 to the range of 0.900 - 0.940. The pattern formed over 49 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.

Tells Me: The price seems to have reached a bottom, showing signs of reversal as it has broken upward after a period of uncertainty or consolidation. A Bottom Triangle shows two converging trendlines as prices reach lower highs and higher lows. Volume diminishes as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction. Then well before the triangle reaches its apex, the price breaks above the upper trendline with a noticeable increase in volume, confirming this bullish pattern as a reversal of the prior downtrend.

This bullish pattern can be seen on the following chart and was detected by Trading Central proprietary pattern recognition technology.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

Venture - Uptrend Still in Progress

Venture Corporation uptrend still in progress.   

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

AEM - Power Up and Uptrend Continue

Tech stock related like AEM had a good power up today.  New support point and new stop loss created today.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

Yoma Strategic - Mini Uptrend Ongoing

Yoma Strategic went from a downtrend, then sideways, downtrend and then a mini uptrend which is ongoing now.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

Silverlake Axis - Bearish Continuation Diamond

Silverlake Axis Ltd forms bearish "Continuation Diamond" chart pattern
Jul 17, 2020

Recognia has detected a "Continuation Diamond (Bearish)" chart pattern formed on Silverlake Axis Ltd (5CP:SGX-ST). This bearish signal indicates that the stock price may fall from the close of 0.240 to the range of 0.170 - 0.190. The pattern formed over 62 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.

Tells Me: The price has broken downward out of a consolidation period, suggesting a continuation of the prior downtrend. The Continuation Diamond (Bearish) begins during a downtrend as prices create higher highs and lower lows in a broadening pattern. Then the trading range gradually narrows after the highs peak and the lows start trending upward. When the price breaks downward out of the diamonds boundary lines, it marks the resumption of the prior downtrend.


This bearish pattern can be seen on the following chart and was detected by Trading Central proprietary pattern recognition technology.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

AnAn Intl - Penny Stock on Uptrend

AnAn International is another unfamiliar penny stock in play by BB.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

OUE - Bearish Symmetrical Continuation Triangle

OUE Ltd forms bearish "Symmetrical Continuation Triangle" chart pattern
Jul 16, 2020

Recognia has detected a "Symmetrical Continuation Triangle (Bearish)" chart pattern formed on OUE Ltd (LJ3:SGX-ST). This bearish signal indicates that the stock price may fall from the close of 1.220 to the range of 0.830 - 0.910. The pattern formed over 85 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.

Tells Me: The price has broken downward out of a consolidation period, suggesting a continuation of the prior downtrend. A Symmetrical Continuation Triangle (Bearish) shows two converging trendlines as prices reach lower highs and higher lows. Volume diminishes as the price swings back and forth between an increasingly narrow range reflecting uncertainty in the market direction. Then well before the triangle reaches its apex, the price breaks down below the lower trendline with a noticeable increase in volume, confirming the pattern as a continuation of the prior downtrend.

This bearish pattern can be seen on the following chart and was detected by Trading Central proprietary pattern recognition technology.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

BlackGoldNatural - Blackiest Price

BlackGoldNatural had been on downtrend since March 2017 and then go sideways since September 2018.  Avoid.

Rule number 1: Always put a stop loss before entry, always, no exception. You do not drive a car if it does not have brakes. Have a stop loss first, then think about entry, end of conversation.

Rule number 2:: No Rule number 2, strictly master Rule Number 1 and you are likely to succeed in Technical Trading.

Frencken - Volume Increase and Price Breakout

Long or Short Alibaba

Now you can trade Alibaba on SGX.

• With a market capitalisation close to S$800 billion, Alibaba is China’s largest e-commerce company, joining the ranks of another Chinese digital economy giant Tencent. With two sessions remaining for the June quarter, Alibaba and Tencent have lodged respective quarterly stock price gains of 21% and 29%.
   
• The newly listed 5x long/short DLCs issued by Societe Generale & Call/Put warrants issued by Macquarie will provide investors a means to outright trade Alibaba. Both issuers have listed a few instruments at different issue prices (DLC) & exercise prices (Warrant) to offer more choice.
   
• Both the warrants and DLCs will also provide a means to trade Alibaba/Tencent against each other through long/short pairs trading. The price ratio of Alibaba to Tencent was 0.45 as of 24 June, which was as high as 0.60 on 28 Nov 2019 and at a low of 0.44 on 23 June.

Daily Leverage Certificates (“DLCs”) and Structured warrants (“Warrants”) are financial instruments issued by a third-party financial institution, usually investment banks, and are traded in the SGX securities market. DLCs and Warrants offer investors an alternative instrument to participate in the price performance of an underlying asset at a fraction of the underlying asset price. Any failure of the issuer or guarantor to perform obligations when due (e.g. issuer becomes insolvent), may result in the loss of an entire investment.

Chinese Digital Economy Giants’ – Alibaba and Tencent

Alibaba Group (“Alibaba”) maintains a similar market capitalisation to Tencent Holdings (“Tencent”) at more than S$800 billion, with both stocks each maintaining a 0.9% in the Bloomberg World Index. This makes Alibaba and Tencent the fifth and sixth largest weight of the world index, which is made up of more than 4500 constituents.

Both brands are household names, with humble beginnings. Tencent, was initially funded by venture capitalists and founded in Shenzhen in 1998, while Alibaba was established the following year, in 1999, by 18 people led by Jack Ma, a former English teacher from Hangzhou.

With two sessions remaining for the June quarter, the two digital economy giants lodged respective quarterly gains of 21% and 29% and year-to-date price gains of 31% and 7%.

Both stocks reported similar YoY revenue growth for the recent March 2020 Quarter:
 

• Alibaba reported 4Q19/20 (ended 31 Mar) revenue was RMB 114,314 million (US$ 16,144 million), a 22% YoY increase (click here for more). Alibaba also highlighted that it had achieved a historic milestone in sales volume, with US$1 trillion in Gross Merchandise Value across its digital economy in FY19/20 with a total annual active consumer base of 960 million globally.
   
• Similarly, Tencent reported its 1QFY20/21 (ended 30 Mar) total revenue was RMB 108,065 million (US$ 15,252 million), a 26% YoY increase, with revenue from value-added services increasing 27% YoY, revenue from FinTech and Business Services increasing 22% YoY, and revenues from Online Advertising increasing 32% YoY (click here for more).
   

While there are similarities in the two giants the Hong Kong listings of the two stocks, e-commerce made up the majority of Alibaba’s revenue in its last FY, whilst Internet Value-added services, through online game revenue and social network revenue, made up the largest share of revenue in Tencent Holdings’s last FY.

Both newly-listed DLCs and Warrants will provide a means to outright trade Alibaba Group in addition to providing a means to trade the two names against each other through long/short pairs trading, depending on one’s view of whether a mean reversion strategy would work well for the pair. The price ratio of Alibaba to Tencent (based on HK listings) was 0.45 as of 24 June (HK$221.4/HK$490.8), which was as high as 0.60 on 28 Nov 2019 and at a low of 0.44 on 23 June.

Reflecting consistency in their recent propensity to swing, annualised 10 day historical volatility of Alibaba and Tencent are also not very far off their 100 day historical volatility levels. Their respective 10 day historical volatilities are currently at 35% and 36%.

Specifications of  5x DLCs on Alibaba & Tencent

Long DLCs are for investors who have a bullish view of the underlying stock (i.e. the investor takes the view that the price of the underlying stock will rise) while Short DLCs are for investors who have a bearish view of the underlying stock (i.e. the investor takes the view that the price of the underlying stock will decline). A summary of the terms is tabled below.
 

Counter name	Code	Underlying stock	Type	Leverage	Issue Price (S$)	Expiry Date
DLC SG5xLong Alibaba	DMBW	9988.HK	Long	5x	0.50	27 June 2023
DLC SG5xLongAlibaba A	DNFW	9988.HK	Long	5x	2.50	27 June 2023
DLC SG5xShort Alibaba	DCMW	9988.HK	Short	-5x	0.50	27 June 2023
DLC SG5xShortAlibaba A	DWNW	9988.HK	Short	-5x	2.50	27 June 2023

 Source: SGX

Societe Generale have listed two Long and two Short on Alibaba with one priced at $0.50 and the other at $2.50 to provide investors with more choice. While the $0.50 DLC is lower in price level, investors should note that it will also be lower in sensitivity to the underlying stock movement as compared to the $2.50 DLC. Despite these differences, both DLCs will replicate the daily performance of the underlying stock multiplied by the five times leverage factor. Apart from the stock code, the letter "A” is also added to the product name for easy identification.
 

Counter name	Code	Underlying stock	Type	Leverage	Last Price (S$)	Expiry Date
DLC SG5xLong Tencent	DANW	700.HK	Long	5x	5.85	5 Nov 2021
DLC SG5xLongTencent A	DSBW	700.HK	Long	5x	1.015	18 Mar 2022
DLC SG5xShort Tencent	DQTW	700.HK	Short	-5x	0.017	5 Nov 2021
DLC SG5xShortTencent A	DDJW	700.HK	Short	-5x	0.058	25 Feb 2022

Source: SGX (data as of 24 June)

Investors are advised to read the issuer documents found on SGX website here or the issuer’s DLC website here for the full details of the DLCs including the product features (e.g. compounding effect and airbag mechanism) and the risks before investing in the DLCs. Prices of the underlying stock can be found on the issuer’s DLC website.

Specifications of Warrants on Alibaba & Tencent

Call warrants are for investors who have a bullish view of the underlying stock (i.e. the investor takes the view that the price of the underlying stock will rise) while Put warrants are for investors who have a bearish view of the underlying stock (i.e. the investor takes the view that the price of the underlying stock will decline).

A summary of the warrant terms is tabled below. Alibaba Put Warrants are expected to be listed on 2 July.
 

Counter name	Code	Underlying	Type	Exercise Price (HK$)	Warrants per share	Expiry Date
Alibaba MB eCW210105	QCAW	9988.HK	Call	250	30	5 Jan 2021
Alibaba MB eCW210202	VWYW	9988.HK	Call	300	25	2 Feb 2021
Alibaba MB ePW210105	5N4W	9988.HK	Put	200	30	5 Jan 2021
Alibaba MB ePW210202	PHYW	9988.HK	Put	150	25	2 Feb 2021

Source: SGX

Counter name	Code	Underlying	Type	Exercise Price (HK$)	Last Price (S$)	Warrants per share	Expiry Date
TencentMBeCW200703	5Y1W	700.HK	Call	450	0.037	40	3 Jul 2020
TencentMBeCW210202	UZJW	700.HK	Call	500	0.215	45	2 Feb2021
TencentMBePW200703	GDNW	700.HK	Put	360	0.004	40	3 Jul 2020
TencentMBePW210202	PQTW	700.HK	Put	380	0.106	45	2 Feb 2021

Source: SGX

Investors should note these Warrants will track the moves in Alibaba/Tencent shares trading in Hong Kong, hence the market-making hours for these instruments will follow the stock’s trading hours on Hong Kong Stock Exchange from 9.30am to 4pm, with a break from 12-1pm. Note that this will also apply to the DLCs on Alibaba/Tencent.

Investors are advised to read the issuer documents found on SGX website here or the issuer’s warrants website here for the full details of the warrants including the product features and the risks before investing in the warrants. Prices of the underlying stock can be found on the issuer’s warrants website.

Specified Investment Products (SIP)

Structured Warrants and Daily Leverage Certificates are for investors who are willing to accept the risk of substantial losses up to the principal investment amount, possibly within a very short timeframe. Investors should also have sufficient understanding of the product and should possess either a high level of knowledge or sufficient trading experience to properly evaluate and assess the product structure, associated risks, valuation, costs and expected returns. All investors need to be Specified Investment Products (SIP) qualified to invest in these instruments.