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Ocean sky, will it resume uptrend after sell down? by Robin Han

Ocean sky recently went up a lot. One of the major reason is that Ezion is to buy 45.15% of ocean sky. After the news was released on 30 Sept, sell on news happen for both Ezion and Ocean sky. The stock suffered a big sell down thereafter. However, we can see that the selling volume was not high in the past three days. And it also can be seen that the sell down was also slow as compared to the speed that it went up. These are bullish technical signals. From the indicators perspective, it can be seen that both MACD historgram and MAs are bullish at this moment. In conclusion, the uptrend is likely to continue after consolidation. One may consider to buy on weakness during sell down to expect the stock can have a rebound or may even continue the uptrend thereafter. The stop loss can be set right below the next level support. From fundamental perspective, the recent financial report was released on 14 August. The report was not good but the price still went up thereafter, indicating that the market had digested the information into consideration. The next quarterly report is likely to be released in mid Nov, before that the bullish momentum may push the price to higher level.

Robin Han
Robin Han

Dr. Robin Han, a graduated from NUS with a Ph.D in Department of Chemical and Biomolecular Engineering, has been actively trading in Singapore stock market since 2007. His passion has let Dr. Robin to become a full time trader since 2010. He has extensively share his experience with his fellow investors on trading Singapore stock market using both technical analysis and fundamental analysis.

Dr. Robin is a regular guest speaker for radio 95.8 on financial program. He also has been invited by different companies and societies to conduct educational seminars on stock investments, including Shares Investment, Wealth Directions (Founder: Dennis Ng), Traders Round Table, SIM, Raffles Business International, Online trader’s club and Alpha Alliance. He is also contracted by N2N (a listed trading software provider in Malaysia) as their overseas educational speaker in stocks.