The recent bull run is impressive which has
broken the resistance at 17,300(since 22 Sept 2014) . This is matched with the
increase in volume. RSI has indicated that there will be increase in momentum
and also with MACD indicating more buying. With more company’s reporting
earnings meeting analyst estimates, we can expect the market to run further
Lets see what will be the candlestick
tonight to prepare for the next action for 04 Nov 2014.
Your next question come? When will the next
pullback or top be? Stay tune to sgwiseinvestors.blogspot.com daily to make sure your position before the next
market downturn.
Recommendation
One
of the stocks that shows in my radar is WUBA
KWEB is China ETF and from the chart, we
can see that there are high volume on the 30 Oct 2014. It is showing white buy
bar with high volume. On the 31 Oct 2014, it is shooting star with lower
volume. This means that people buying on 30 Oct 2014 are not selling on 31 Oct
2014. We will like to see a white bar on 03 Nov 2014 to give us a confirmation
that it will be moving higher.. RSI is pointing upwards thus we can expect it
to move higher.
DO NOTE:
This fund comprises of ALIBABA and other china internet stocks
With the recent run-up, we can confirm that
“ACCUMULATION” around price 34-37
range from BB has been completed. Tencent has purchased more shares and
accumulated about 25% of the company. Thus we can say that the bottom has been
met and next action will be ”UP”. Increase in
volume for 31 Oct 2014, shows that there is increase in buying and more upside
is to follow through. We can expect the price to reach 200MA at 43.05. There
might be a small pullback before it resumes to meet its high at USD56 (since
July). RSI shows that the stock is increasing in momentum and still have a lot
of room to run.
It has good fundamental as Tencent has
decided to use WUBA as a tool to compete with ALIBABA and with the recent
purchase of minority shares of Edaijia that will boost its presence in Mobile.
Recommendation
I think “Aggressive risk taker” can buy
some shares for WUBA at the present share price else the price to
acquire when there is a pullback. Stop loss will be at around USD34.
Purchase Price: Above USD40 dollars
(Tencent’s purchase price – this will act as strong support).
Stop loss: Below or equal to USD36
dollars.
Short Term Target price is USD43dollars.
Long Term Target Price is USD 56dollars.
Next earning announcement is 19 Nov 2014. (to be confirmed)
