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Wednesday, June 14, 2017

Genting: Intermediate Uptrend Has Ended


On June 7, Genting broke its intermediate uptrend line, SS which dates back to December last year. To stay within that uptrend line, Genting must quickly go back above RM9.85. Not only did Genting fail to do so, it also broke below its flag formation yesterday. This means that Genting’s intermediate uptrend has now reversed into a downtrend.

Chart 1: Genting's daily chart as at Jun 13, 2017 (Source: Shareinvestor.com)  

However, Genting still has a chance of not entering into an intermediate downtrend if it can stay above its previous long-term downtrend line, RR at RM9.60 (see the next chart). If Genting can stay above this price level, it has a chance of moving sideways and avoiding an immediate downtrend. 

Chart 2: Genting's monthly chart as at Jun 13, 2017 (Source: Shareinvestor.com) 

I would recommend investors to sell or reduce your position in Genting based on the following:
1) the breakdown of the intermediate uptrend line at RM9.85; thus ending the hope of higher prices, and
2) the downside breakout of the flag formation – which means a bearish reversal & possibly lower prices ahead.

You can choose one of these 2 options:
1) Sell on strength if Genting rose to RM9.70-9.80
2) Postpone your selling with the hope that the long-term downtrend line support at RM9.60 may forestall the further price decline. This may give an opportunity for Genting to recover back into the flag formation or, better still, above the violated intermediate uptrend line (no longer at RM9.85 but at higher prices at RM9.90-9.95). However, if the support at RM9.60 fails, the follow-thru selling can be fast & furious.

Note: 
 
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

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