Tag: Japfa

CFD Trading – Buy Japfa (UD2.SGX) @ $0.660. Stop at $0.625 and Target at $0.725

Nicholas
Japfa Stock Code UD2.SGX

Outlook
Price broke above the cloud on the 13 October 2020 and closed above the cloud as well, which could be the start of a new bullish trend. Conversion line and Base had a bullish crossover earlier, hinting of the bullish trend. Lagging Span is above price of 26 days ago and above the cloud as well, confirming the bullish trend. MACD is bullish and rising. Both of MACD lines are above the zero line, hinting of a bullish trend. We are expecting price to push higher to the previous high of $0.725.

Strategy                  
$0.660                Buy
$0.725                Price Target
$0.625                Risk Management Stop
3 weeks              Trade Duration

CFD Trading – Sell Japfa(UD2.SGX) @ $0.660. Stop at $0.705 and Target at $0.585

Nicholas
Japfa Stock Code UD2.SGX

Outlook
Price broke above the cloud on 20 April 2020 and has stayed above the cloud since that day. Price reached a high of $0.725 on 23 June 2020. This could be the high as there was a divergence warning from MACD. Price has been making lower high since that high. Conversion and Base lines had a bearish crossover, confirming the bearish trend. Lagging Span is below price of 26 days ago but is above the cloud at the moment. MACD is bearish but is near to the zero line. MACD is about to show a bearish crossover. We think price is likely to move to the gap support at $0.580

Strategy
$0.660                Sell
$0.585                Price Target
$0.705                Risk Management Stop
3 weeks Trade Duration

Profit From CFD 10

Nicholas

In our previous article on CFD 10, we had buy call for DBS and Japfa.

DBS missed our target as it only reached a high of $26.71 while our target was $26.80. Japfa price high was right at our target price of $0.58. But if our sell queue is not done, it is better to sell of the shares today.

Our buy call was issued on 31st Oct and today is the 9th calendar day. For CFD 10, there are ten days of free financing as well as lower margin requirement for the first 10 days. Tomorrow is a Saturday and the stock exchange is not opened. By the time Monday comes, it would have been 12 calendar days. If we sell on Monday, there will be 2 days of interest charged. As much it is important to monitor the days in CFD 10.

Counting the days for CFD 10 purchase

There is also a higher margin requirement from the 11th day onward. If we do not sell off by Friday, there could be higher margin requirement depending on the stocks. For our 2 stocks, there were no increase in margin. An increase in margin for a penny stock could see the margin from the 11th calendar days rise from 20% to 70%. A margin call would be issued where clients will need to top up on Monday or in a worst case scenario, see their penny stocks forced liquidated because the margin ratio was above 140% resulting in an immediate force liquidation.

Remember to watch the number of days in your CFD 10 trading.

CFD Trading – DBS Bank & Japfa

Nicholas

DBS Bank Stock Code D05.SGX

Outlook
Price broke above the cloud yesterday. This could be the start of a new bullish trend for this stock. This stock has built a base, twice building support at $24.00 over a four month period since June 2019. Now price has moved above the cloud and its previous price high resistance at $25.60. Both Conversion and Base line also had a bullish crossover confirming the bullish trend. Volume on the day of the breakout was also higher than the previous few days. MACD has turned bullish with both its lines above the zero line. Using an Ichimoku V price projection, we have a price target of $26.80. Using an Ichimoku E price projection, we have a price target of $27.20. There was a price high resistance at $27.03 and also a gap from $26.97 to $27.47. Price should be able to move to the target zone of $26.80 to $27.03.

Strategy
$25.70                Buy
$26.80                Price Target
$24.90                Risk Management Stop
10 Days              Trade Duration

Japfa Stock Code UD2.SGX

Outlook
Price moved above the cloud yesterday after being in a bearish trend for the past seven months. Before the breakout above the cloud, there were already signs of a low and base forming with MACD divergence warning of a possible bottom back in September 2019. The breakout candle was a strong white candle and its size was larger than the previous candlesticks before it. Volume of the day of the breakout was also much larger than usual. These are good signs for the breakout. Both Conversion and Base lines also had a bullish crossover a few days before the breakout and both lines are moving higher as well. Using an Ichimoku E price projection, we get a price target of $0.58. There is a price resistance at $0.595. These zones are likely to cap price advance.

Strategy
$0.505                Buy
$0.580                Price Target
$0.465                Risk Management Stop
10 Days              Trade Duration