Wingtai Analysis

Hello all,

I have some words on Wing Tai, W05.SI, one of the property counters.

First, I have found a potential bull flag in Wing Tai. It is small in size, but I consider it a potential one. Volume shows the right shape – surge in volume during ” flagpole days” , then volume tapers down while price forms the flag. Of course nothing is certain as of yet. But the reason I want to highlight Wing Tai is because there is a larger pattern that has been formed. I must say that I cannot agree that it is a pattern, because it violates my rules when identifying patterns, or at least patterns that I will trade. Click on the chart to enlarge it. Look at the two light blue coloured trendlines. They represent the outline of a symmetrical triangle. The reason I do not feel optimistic about it is because it does not have volume at all; meaning, volume behaviour is not what I am looking for in triangle patterns. Volume here is dome-shaped – rising in the first half of the triangle, then decreasing in the next half. Some of you chartists may not be so concerned about volume, so this counter should interest you. If you see it as a triangle, it is one that has a valid breakout. On breakouts days, the volume was higher than average. For me, I will watch for the potential bull flag in Wing Tai. One more thing, I like the picture on the GMMA indicator. I use this indicator to look for current trends or trend changes. The red lines you see are the faster MAs, while the green ones are the slower ones. Basically, I like the GMMA to have faster MAs clearly riding above the slower MAs when I am bullish on a stock.

 

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

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4 Comments

  1. Newbie
    Posted November 24, 2010 at 12:38 AM | Permalink | Reply

    I would not have considered that a flagpole because the rise was so puny compared to the recent price activity. I think it would be better if the flagpole really ‘stands out from the crowd’. It might give it a better probability of working out. What do you think?

    • Administrator
      Posted November 24, 2010 at 7:42 PM | Permalink | Reply

      Hello,

      Yes I agree with you to some extent. Anyway, right now the potential bull flag will be considered invalid already since price dropped below my immediate support level. Generally, the bigger the pattern, the better. So you are right to say if the flagpole stands out, it will be better.
      Coming out of a chart pattern, price sometimes forms very small patterns en route to its target, thus I highlighted these points on Wing Tai’s chart.

      Thanks for your thoughts!

  2. noobinvestor
    Posted November 24, 2010 at 7:33 PM | Permalink | Reply

    Hi, is it possible to do a quick analysis on Midas and cosco? Thanks!

    • Administrator
      Posted November 24, 2010 at 8:19 PM | Permalink | Reply

      Hello,

      I posted my analysis on both of those counters.
      Basically, I am a bear on those two stocks in the short-run at least.

      Thank you for your requests. Will be looking forward to further analyses for you.

One Trackback

  1. By Wing Tai’s triangle « TechnicalAnalysisTalk on February 9, 2012 at 11:52 AM

    […] Tai consolidated into a symmetrical triangle. I discussed the triangle during those days – https://technicalanalysistalk.wordpress.com/2010/11/22/wingtai-analysis/ . So what happened was, I was bullish on Wing Tai, seeing an upward breakout that came with a […]

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