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PSL Holdings Likely To Rally If Market Rebounds
Trend Spotting | 05 February 2014
By: Robin Han
Articles (102) Profile

Global markets have been in panic over the past two weeks. The Dow Jones Industrial Average fell from 16,500 to 15,370 within 10 trading days and our Straits Times Index (STI) had 200 points shaved off within eight trading days. Are there any buying opportunities given the current bearish market?

The answer is yes. There are a few strong stocks that have managed to hold well even when the market fell, thus they are likely to rise should the market start to rebound in the next few days.

PSL Holdings is one such counter. In early January, it broke out from a long-term consolidation pattern with strong momentum. Both the MACD histogram and the Moving Averages are showing bullish signals. In addition, it held well and even tested its recent high when the STI suffered a severe sell down.

The most recent quarterly financial report was released on 14 November 2013 – while the results were very good, price reaction indicates that the market has already digested the news. With the next report likely to be released only in mid-February, there is enough time do a short term trading on earnings expectation. One may consider buying if price rises above the recent high, with stop loss set below the recent consolidation zone.

Daily Chart Of PSL Holdings

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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