Hyflux “defying the rules”

Evening one and all,

I have a review of Hyflux’s chart for today. In my last post, I identified a confirmed symmetrical triangle with an upward breakout. I even had a bold, high target for Hyflux. Right now, if you have been monitoring Hyflux’s chart, you will see a triangle that has performed badly. That triangle is in aqua colour. I was closely monitoring Hyflux’s price action, and realised there was a potential of a larger triangle in the making. This triangle I am talking about is the one in blue colour. It is a larger, ascending triangle. Theoretically, this should mean upside. So, with a previous pattern confirmed, I was very much hoping this ascending triangle would come with an upward beakout.

Today’s trading sees Hyflux shedding 1.9%. Also, Hyflux is now below the important 200-day moving average. So, what all these mean is that I have to look for more downside in Hyflux. I do not like to change views, but I have no choice but to do so if there are reasons for even a 180% turnaround. I take what I see on the chart, and now, I see a larger, bearish pattern. It certainly will not be good for those who went long after the first triangle. But let us all face it, every trader will have to take losses. I have a quote from legendary investor George Soros: “It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” I always share this quote with my friends when they ask me about failed patterns. This is something that we should all remember as well. I have a ficticious and simplistic example to add on: Say, you make 10 trades. 6 are losers and 4 are winners. If you have a policy of taking 5% hits everytime you lose, and you ride out you winners up to 13, 14%, in the long-run you will be profitable. So, I really hope no one comes here and follow recommendations, whether implicitly or explicitly made, blindly. As I have typed out in the “About site” page (tab above), this blog is best used like an indicator. No indicator should be followed on solely and blindly. With this, let us now see if Hyflux will trade down as expected.

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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