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KSH: A Strong Stock That May Resume Its Uptrend When The STI Is Weak
Trend Spotting | 22 October 2012
By: Robin Han
Articles (102) Profile

In an article written about Biosensors International last Monday, we mentioned that the US market has shown some weakness and the Straits Times Index (STI) is also likely to remain weak. One week later, the weakness in the market still remains. Last Friday, the US market took a hit and was in the red. The Dow Jones Industrial Average (DJIA) dropped 1.5 percent, while the Standard & Poors 500 (S&P500) dropped 1.66 percent.

One of the reasons is that the European Union did not make good progress in their meeting. The other reason is that many US companies’ quarterly earnings reported were quite disappointing. The STI is likely to be affected by the US market. And it is likely to gap down on Monday morning. When the market is gapping down, a panic sell will usually result in a sell or short term bottom because the market is likely to rebound thereafter. Personally, I will prefer finding some strong stocks like KSH Holdings (KSH) to buy when many market participants are selling panicky.

KSH has been showing strong potential recently. Its most recent quarterly report showed a 35.3 percent increase in revenue and profit increased 65 percent due to increased contributions in main business, construction business and sales from development property. The improvement in fundamentals has supported the stock price to remain relatively strong in a weak market. From the weekly chart, we can see that KSH broke a mid term resistance at $0.30 and sat above it thereafter, which is a sign of strength. Besides, trading volume shrunk very fast during its pull back, indicating that the movement is likely to resume. As mentioned above, the STI is very likely to gap down today because of the drop seen in the US market last Friday. KSH may also pull back some more due to the gap down of the STI. If KSH pulls back to the zone between the 38.2 to 50 percent in the fibonacci retracement levels, it will be a good entry with nice risk/reward ratio. In order to protect myself, I will set a stop loss right below this zone.

KSH Weekly Chart

KSH Daily Chart

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Upcoming seminar: TAKING ADVANTAGE OF MARKET UNCERTAINTY

Do you often feel that the market is very unpredictable and always going against you?
Do you often “buy high, sell low”?
Do you want to achieve “lower risk, higher return” rather than “high risk, high return”?
Do you want to know where the STI and individual stocks are heading to?

Dr.Robin Han will share with you: TAKING ADVANTAGE OF MARKET UNCERTAINTY

You will learn:

1. How to avoid the painful situation whereby “price drops immediately after you buy, goes up right after you sell”
2. How to achieve “lower risk, higher return” by using some technical skills
3. Dr. Robin Han’s secret method to analysis the STI, blue chips and your favourite stocks
4. Apply what you have learned on the spot, rather than going home and forgetting it the next day

Language: Mandarin
Date: 27 Oct 2012
Time: 2:30pm-5:30pm
Venue: Near City Hall MRT, register to get detail address
Fee: $10

Seats are limited. For more information, please call or sms 91077386.

Robin Han is a Ph.D in Department of Chemical and Biomolecular Engineering and has got a solid foundation in the financial markets.

Please click here for more information about this author.


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