CORRESPONDENCE COURSES
Genting Sing: Selling to continue? Price 0.78. Sellers still not letting go imo…
Author: Trading Impossible | Joey Choy
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Just about a month ago in early Feb, we saw Genting Sing approaching the key 0.85 support level dangerously…
The key thing is that since the beginning of 2018, which is like 2 years ago, we have already seen the longer term trend of Genting Sing starting to turn down.
It has been forming lower highs since then as seen from the downward sloping channel resistance line… see the red line below..
As we head towards 0.85, there were some signs that sellers were attempting to eventually break it, but we are just not sure…
Were waiting for some specific bearish price actions for a good signal for the downtrend to continue…
Hence, some downside targets were drawn for the impending breakdown..
A matter of time imo looking at how all the moving averages were pointing lower…. See what I mean regarding the target… to 0.70 first as it fills the gap downwards…
A few weeks passed and just last week, we finally saw that bearish price action…
Sellers just came in fast on market weakness and sold off the entire block of support at 0.84 – 0.85…
No chance given..
Finally, after more than 3 years since Nov 2016, we have seen this 0.85 support BROKEN!!
Not a good sign for sure and this can lead to more weakness in the short term..
Downside targets were reiterated again as seen, with some temp support coming in at 0.800 first.. then to 0.700…
Downtrend was intact for now below 0.85 new resistance…
Fast forward today, we have also seen the temp 0.80 support BROKEN!!
SEEMS like sellers are not letting go…
Imo, we can still see more selling pressure as long as price stay below 0.80 in the coming days… all the way to 0.700 as per original target drawn..
In situation like this, would not want to be holding long positions blindly and just HOPING IT WILL RECOVER…
It might, I am not too sure when, BUT just that for now, selling IN THE SHORT term looks more likely then a longer term reversal back up…
Can consider riding CFD SHORT positions to profit from the weakness… see where we are below now!
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