CFD Trading – Sell Frencken (E28.SGX) at $0.975. Stop at $1.020. and Target at $0.895.

Frencken Stock Code E28.SGX

Outlook
Price broke below the cloud 4 days ago and has stayed below the cloud for the past 3 days. This was after a price move to break above the cloud. Yesterday, we saw a Bearish Engulfing candlestick price pattern, which is a hint of a price downtrend ahead. Conversion line and Base had a bearish crossover, hinting of a bearish trend ahead. Lagging Span is below the cloud but is above price of 26 days ago and unable to give a strong confirmation of a bearish trend. MACD is still bullish with both its lines above the zero line but MACD has a bearish crossover, hinting of a bearish trend ahead. We think price could be about to make a down move to the previous resistance turned support line at $0.895.

Strategy                  
$0.975                Short Sell
$0.895                Price Target
$1.020                Risk Management Stop
3 weeks              Trade Duration

CFD Trading – First Resources & Frencken

First Resources Stock Code EB5.SGX

Outlook
Price is currently at the lower edge of the cloud. Price has been capped on three occasions at a price resistance high at $1.30. Both Conversion and Base lines had a bullish crossover earlier, confirming the bullish trend but price is weak as it is below the cloud, Conversion line and below the Base line. Lagging Span is above price of 26 days ago but is still below the cloud at the moment. If price is unable to move above the cloud, price could be heading lower to $1.09 again. MACD is bearish at the moment with both its lines below the zero line. MACD could be about to turn lower as well.

Strategy
$1.25 Short Sell
$1.09 Price Target
$1.38 Risk Management Stop
3 weeks Trade Duration

Frencken Stock Code E28.SGX

Outlook
Price broke through the cloud recently and managed to stay above the cloud. Price also moved above the recent high and this breakout could be the start of a new uptrend. Conversion and Base lines had a bullish crossover, confirming the bullish trend. Price is also above the Conversion line, Base line and the cloud as well. Lagging Span is above price of 26 days ago but is still below the cloud at the moment. MACD is bullish with both its lines above the zero line. MACD is moving higher and is hinting of more price upsides.

Strategy
$0.720 Buy
$0.820 Price Target
$0.660 Risk Management Stop
3 weeks Trade Duration


CFD 10 Trading Idea – Frencken Group

Frencken Group Stock Code E28.SGX

Trading Buy Range: S$0.95-0.96
Last price: S$0.95
Target price: S$1.07 / 1.15
Protective stop: S$0.87

Yesterday, price broke out from a pennant pattern, which is a continuation pattern. The base and lagging lines are all far above the cloud, confirming the strong uptrend. The MACD remains bullish throughout the consolidation period and there is a bullish MACD crossover. These increase chances of the stock price continuing its upward momentum to move higher.

The potential upside targets are S$1.07 and S$1.15. Stops could be placed at S$0.87.
Approximate timeframe on average: 2-3 weeks (initiate this trade idea if the stock hits the entry price range within three trading days)

ANALYST
Wong Shueh Ting, CFTe

Note : Clients can use CFD 10 to implement this trading idea.
The margin requirement for the first 10 days is 20% and should the trade duration takes longer than 10 days, clients need only to come up with an additional 10% of margin till the end of the 30 calendar days contract.