Yesterday’s close for Venture was strong, closing at the high of the day at S$6.78. Venture pulled back upon testing resistance at S$7.14, indicating that selling/profit taking came into the market. The strong close near the highs yesterday tells us that selling is probably done and buying is coming in.
Similar to SPC, stochastics has generally been overbought and is only dippingslightly to the 70 region. We interpret this as a sign that momentum is still strong. Initial resistance is at S$7.28, the recent high. Then S$8.34, S$8.80 and S$10.00. We recommend taking at least half of profits at S$8.34 and trailing stops tightly. The $10.00 mark is far away and there is only a modest probability of it being hit. Trailing stops will allow investors to take as much as the market offers while taking profit at S$8.34 locks in a healthy amount of profit in the mean time.
Recommended stop loss is at S$6.30. But with now HP reports lower than expected results last night, not too sure now.
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