The market looked like a dumping ground last 2 days. Singapore STI and Hong Kong HSI finally broke the year low support. That’s a pretty bad sign. Plus, US market was in the red yesterday and that will like continue today as the fear of the bail out of fannie and freddie brothers.
While the overall market looks very bearish, I am seeing many stocks trading near the support and many of them broke the support as well. I saw many of them are in the property sector like Capita brothers and Yanlord. Look at CityDev also broke the support at 10.2. That’s why I am wondering if the property sector is now leading the market in the downtrend.
There are 2 stocks that was trading on the high volume today caught my attention.
They are China Hongxi and SGX.
Is China Stock Leading the Landslide Too?
While I was looking at China Hongxi chart, I am wondering too if the China play on Singapore stock market are also leading the landslide as well. Look at China Hongxi, it is very scary to see that it lost from 1.4 to 0.4 now in less than 1 year.
Shanghai stock market has been experiencing the all time low now as well. I went to a seminar last Friday and the speaker quoted China stock market is like a casino. Is it now the time that the casino is crashing, especially the Olympics is now coming to an end.
China Hongxi trade on very high volume today and it broke down the support at 0.39. The increasing ADX is suggesting it strength to dive down further. So, if you do have CFD, you can use this opportunity to gain some pocket money. But also be sure to put in the stop loss as well, just in case, ok.
Singapore Stock Market Picks - China Hongx
SGX is trading very near to the Support?
Another interesting stock that I found today is SGX. SGX touched the support at 6.3 today as well. It will definitely go down south together if the index is dropping low. So, break down at the support can offer a good opportunity to short on SGX as well. But also note that SGX is a blue chip with fundamental, so, be sure to take profit quick if you do short.
Singapore Stock Market Picks - SGX
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
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looks very good, thanks