Wah Seong Corp Bhd has secured a contract worth US$127.09 million (RM557.65 million) for the supply of certain floating production storage and offloading (FPSO) modules by Yinson Holdings Bhd. Its indirect wholly-owned subsidiary WS Engineering & Fabrication Pte Ltd was awarded the contract by Yinson's unit
1. In the last 3 years Waseong had a spectacular fall from 1.45 in mid 2020 and hit bottom at 40 sen in 2021. Thereafter, it consolidated within a range of between 55 sen sen to 80 sen until July 2022.
2. Since then, the counter has staged a mini bull run and a confirmed uptrend supported by the announcement of project and award in the oil & gas industry from Yinson which is valued at 557.6 m.
3. The uptrend and its 1st leg began at 55 sen and soared to reach 68 sen for a gain of 13 sen. The 2nd leg which is a correction leg saw the counter retracted to 62 sen. That is a decline of 6 sen or 46%.
4.Early Jan it resumed its uptrend and kicked into the 3rd leg which is an up leg. Price has moved from 62 sen,and decisively broke the resistance at 68 sen and aggressively pushed upwards to reach an intra-day height of 77.5 sen to close the day at 75 sen which was down by 1.5 sen. 5. Technically, the trading day on 31st Jan is represented by a prominent red bar in the candle stick chart. This red bar is known as the 1st day reversal of the 3 leg uptrend. Those who rely on technical analysis to trade would have sold at 75 sen before market closed. 6.If there is any truth with technical analysis it also means the 4th leg which is a correction leg has kicked in yesterday. How much is the correction and by how much price will fall before its resume its uptrend and accelerate into the 5th leg.
7. The 2nd leg retraction was 46% but the 4th leg retraction would usually be mild because the uptrend has been confirmed and advanced into it course. Investors are conscious and aware of the project, company prospects and future earnings.
8. Many will hold onto the shares and endure the fall. If this observation is served as a guidance share price would arbitrarily retract milder say 35%. Now, 35% of 15 sen is 5.5 sen. If you take 77.5 sen minus 5.5 sen that would mean 72 sen . 9. Technically, it will hit 72 sen or maybe slightly lower before the counter will resume its 5th leg uptrend. From thereon it can possibly go sky high unless impacted by a fundamental change that has a material impact on the profit performance and earning per share. 10. This is my personal perception and technical opinion of the counter and it is not intended to influence your trading strategy and investment plan. 1/2/2023
1.Today waseong opened and raised strongly during the trading session. It opened at 75 sen and reached an intra day high of 81.5 sen and thereafter experienced a massive sell down to close flat at 75 sen over huge volume exceeding 24 million shares.
2. In the candlestick chart the price movement and trading takes the shape and pattern of a shooting star or invert hammer.
3. Shooting star is a bearish candlestick in an uptrend as in Waseong. Clearly, profit taking has set in and the uptrend has lost and continued loosing its upwards momentum.
4. The implication of a shooting star signify that a reversal pattern has begun and will accelerate in the coming days.
5. Further selling and weakness in price is realistically expected.
6. Technical has prominently overshadowed fundamental. 2/2/23
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by Goodlucktoyou > 2022-12-02 16:51 | Report Abuse
buy buy buy