Parallel channels

Hello traders,

I have some charts that review what I have posted in the last few months. All the charts have parallel channels in them.

First up, I have a chart of Lippo-Mapletree Indonesia Retail Trust . In my previous posts on Lippo-Mapletree, I identified a strong upward parallel channel. Then, Lippo-Mapletree was trading near the bottom of the channel. Technically, this is an obvious buy signal. Now, Lippo-Mapletree has shot up, and the closing price today is 60.5 cents. So far so good. I still see more room for upside.

Next up, I have Starhub, CC3.SI. Once again, please refer to my previous posts on this counter. I have a current upward parallel channel for Starhub. Over the last several weeks, Starhub was sliding down after making post-crash highs at $2.90, together with the general market. Thankfully, Starhub found support at the bottom fo teh channel – which coincides with the 200-day MA too. With the channel still intact, I will be looking for Starhub to go ahead and test the $2.90 again.

Finally, we have New Toyo, N08.SI. I had a post on this counter recently showing an upward parallel channel. So far, everything looks good, with price trading nicely inside the channel still.

Looking at how low the stock price is, and also other indications on the charts, I am actually very interested in getting a long position in soon. I have been closely monitoring price and hoping for an entry. I hope this does not entice anyone to trade as well. I firmly believe each of us should do our homework first. As much as I believe in my brand of technical analysis, I know very well that you will lose money if you blindly follow this blog. I cannot tell you exactly why, but you will lose. Life is like that; just when you thought you will make money by following a proven, well-known investor – or in this case, a blog that you may like – you will lose. I have a family member who keeps in contact with a fund manager. Sometimes she will have lunch with the fund manager, and well, what do you think happens? Yes, you guessed it right – she will receive some tips from the fund manager. Somehow or rather, over the years, she still does not replicate the very good performance of the fund manager at all. And why is that so? This is what she told me about what the fund manager told her once during lunch: “XXX, I can give you tips on what stocks to look at; but, at the end of the day, if you do not know when to buy and sell, you can still lose money even though I am making.”.

I think this is certainly true for this blog too. So as my post on parallel channels – together with me indicating that I may trade New Toyo – comes to an end, I have to remind us that no one should follow the advises here blindly. What works for me may not work for you. A loss that I take may not be what you can stomach. A profit I am letting run may be a profit you better take. With that, let us see how these parallel channels work out in the weeks ahead.

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