Genting HK

Evening traders/investors,

I have a technical analysis of Genting HK, S21.SI, for today.

First up, I have a large view of the price action of Genting HK for the last decade. Just after the crisis, Genting HK found support at 60 cents. Once that level was breached, price has never gone back up. There were two tests of that resistance in 2007, which were followed by sharp drops. A nice rally in 2010 brought Genting HK to about 55 cents before recent price consolidation that looks like a bull flag in the making on the weekly chart.

I have a closer view of this huge bull flag. I have not traded large flag patterns before, so I am quite skeptical about potential upside in Genting HK. The thing with a large bull flag is, the flag is actually a downward parallel channel. And the bigger a channel, the stronger it is. As a chartist, I cannot ignore this downward channel which in turn means a general strong downtrend in place.

What makes Genting HK’s chart interesting is that price has actually been finding very good support at the 200-day MA (see green arrows). Which, I believe, is a very important element on any chart. If price manages to hold this moving average, I can consider this a valid potential bull flag awaiting breakout. The psychology behind this would be, after a powerful run to 55 cents in 2010 – this run-up is a 150% move – price is now taking a breather. With the 200-day MA still climbing, and price finding support there, price is getting strong support from the moving average. This should imply a breakout from the potential bull flag. Of course, if breakout does not occur, and price continues slipping and sliding downwards, then I will remove the bull flag I have drawn on my chart. For now, we should monitor Genting HK for a potential strong move from a breakout of a bull flag.  

I have one more chart below, which shows a humongous pattern in the making.

Click on the chart on enlarge it as I take you through what I have drawn. In yellow, you will see a large cup and handle pattern. The latter part of the formation being the potential bull flag I was talking about earlier. This huge pattern should mean good prospects for Genting HK’s share price in the longer term, as this pattern only comes with upsid, according to technical theory. So, with a rough cup and handle pattern drawn, I decided to look for other signs that will confirm this as a strong pattern. Usually, cup and handle patterns, especially large ones, will have smaller cup and handle patterns inside them. In this case, I found two smaller cup and handle patterns – in pink and maroon colour. Also, near the bottom of a cup and handle pattern, there should be a bump up as well. In Genting HK’s case, we get a huge bump in 2009.

So, with so many bullish patterns discussed, let us see if Genting HK does start to show signs of testing the 60 cents region, and even breaking that level soon.

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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