Monday, August 6, 2012

Trade Update 120730 **Buy Alert** SGX - SMRT @ $1.63

An update to my **Buy Alert** of SMRT issued on 30 July 12, I managed to entered at $1.625 with 10lots, still the price fell to $1.62 before a sudden 1 day surge today to $1.655 where I closed out my trade.

   I closed it this early partly due to unexpected delay in my inter-bank transfer which my LimTan Broker has graciously helped me to hold, but I thought it would be better to simply close it to free up the deliquent amount from my broker's account. I maybe wrong but I was told to be a broker / remiser you need to have a account deposit, should your clients fall short in payment, the broker's account will be used to top up beyond T+3, in the past inter-bank transfers will show up in bank account in 2 working days, but this time it took longer.

Let me know if you are keen to open any accounts with LimTan, LimTan brokerage is the only brokerage in Singapore that gives NTUC Linkpoints for fees charged which is much more useful than the typical points by other brokerages which are low and restricted to their own products. Furthermore there's account openning rewards now, with both applicant and referrer benefiting from NTUC & LimTan vouchers. Now back to the trade analysis:

Firstly, this counter is only at the start of its "up" wave, it is highly likely that the counter will rises further and even reverse its current mid-term downtrend.
As my daily chart below shows, I was lucky to close at the top to today's bar, but all indicators have turned bullish with Parabolic Stop and Reversed (that green dot below today's white bar), the higher Force index, and the impending crossing of the MACD, Signal line.

The key is to watch for opening of price above $1.65 & closing above $1.65.
When this happens, it confirms the reversal of short-term trend, and one could look forward to a rise similar to the period 18 Jun - 3 Jul, when SMRT rises from $1.65 to $1.72 before reversing again.

Should the trade turn sour and fall, the decisive resistance will be $1.50 years ago, around March 2009, but that is very unlikely to happen. Though SMRT is still in a mid-term downtrend (Jan 2011 till now), this counter is still a value gem with strong fundamentals and return if one is to hold a Buffett-type of long term view.

To find out how this counter fits in to "Buffett Portfolio" & yours, as well as 100+ research articles by other brokerages, complete the form below (the first 3 respondants will get my SMRT special report and 1 week of 100+ research articles for FREE, the next 4th to 50th subscribers will be offered a one-time special price of only SG$5 to get the above all plus my favourite 2 ebooks on Technical Analysis & Value Investing).

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