Likewise, another casualty of the recent selldown in the global stock market. After the price broke away from the downward sloping trendline gave me confidence on this stock. I waited for price to break the first peak after breaking the trendline, so as to confirm the validity of the breakout. Hence, I entered at the second peak. However, it did not have the momentum to break another resistance at S$9.38 (indicated by horizontal dotted line on the diagram). Stop loss was triggered at S$9.05 but it closed near it’s open. This shows that there are buyers supporting the stock, buying up when the price came down. Almost all stocks have this characteristic and I wonder if there is any conspiracy behind this. Where do we find so many buyers buying up the price?
Bought 1,000 shares at S$9.32 on 15 Jan 10
Sold 1,000 shares at S$9.05 on 22 Jan 10
Commission = S$30
Financing charges = S$4.45 (S$0.89 x 5 days)
Loss = -S$304.45
