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Nimbuscapital

[Analysis] ISDN (I07)(SG)Consolidation occurs when there is a presence of sellers in the market. Price will remain sideways until sellers have exhausted, then it will eventually rally up. The exhaustion in supply can be seen in decreasing volume within the same price range. As a trader, you need to understand that buying within this consolidation means, you will be held for some time. This is because while volume can hint at supply exhaustion, there is no way to 100% confirms such a fact. Hence, the expectation and assumption that price will immediately rally is the common cause of traders failing to catch any form of rally. Impatience and lack of holding power is a major contributing factor to retailers unable to secure profits. Traders will also need to ensure that after they entered, they are not stopped out while the consolidation is still ongoing. The cause is usually due to improper stop loss. Sad fact: Many traders are able to "pick" the right counter, but they are unable to execute a profitable trade.
SGX:I07Long
by NimbusCapital
[Analysis] Sembcorp MarineOnce an O&G giant at $6.00, it's quite heartbreaking to see the company become a penny at 0.150. This drop is most likely due to the proposed rights issue to improve its gearing to explore the merger with Kepple O&M. Regardless of its overall future outlook, the Rights Issue is never pretty for existing holders. Sembcorp Marine just very recently executed an extremely dilutive rights issue prior to its divorce from Sembcorp Ind. Chances are that many "loyal" holders will most likely be unloading given that they have been "duped" into another rights issue yet again. One can only milk the cow so far. Who's to say Sembcorp Marine could recover in the next 10 years. It is highly possible. But as a trader, one does not trade into uncertainty when there are many other options available. It is a common fallacy that if the stock was once very high in the past, it can recover to former days glory. Sadly, the fact it had dropped so low is an indication that such recovery is highly unlikely. Trend, market, and macro have changed since then. That's why the price dropped. However, the opposite is actually more probable. Stocks that have not seen the high and is on the uptrend are more likely to see the highs because it is working towards that future. Think Propnex, Frencken, iFast. Yet the idea that if a counter was $6.00 in the past and it's $0.150 now can go back to $6.000, is extremely flawed. SIA will never see $12 in the next 7-8 years. Creative can only dream to go back to $26 in this lifetime. The most probable way anyone could profit hugely from Sembcorp Marine is if it gets privatize at a reasonable premium after the rights issue (Similar to what happen to tiger air). Even then, this is a long shot, and the majority of the holders will still be at a loss. Sure, Sembcorp Marine will have a small rebound here and there which will trick inexperienced/emotional traders into going long. That sort of return you could catch from such rebound can be easily caught in another uptrend counters with much lesser risk. Verdict: Low can go lower. Not worth the risk to catch any form of rebound!
SGX:5E2
by NimbusCapital
[Analysis] Hang Seng Index (HSI)(HK)Price is currently consolidated between a tight zone of 27500 - 29200. These two-level form the current resistance and support. Until either level is broken, it is best to stay away from trading the HSI as the direction is unknown. Trading within the range is not recommended as the movement is choppy and the range itself is very narrow. You can get easily stuck The major support is at the 26000 levels. As long as this support is held, HSI remains bullish. This consolidation does have a bullish bias overall. Would not recommend to short unless you are looking for scalping 3-4%. Verdict: Slight bullish bias, but will remain sidelined for now as it is consolidation
HSI:HSI
by NimbusCapital
[Analysis] NIO Inc (NIO)(US)This is not a trade setup. DYODD. Nio have retraced from 67 to 41.5. Crucial support is at 38.00 - 42.50. As long as this support holds, higher prices are possible. Price momentum and volatility can sent the price below 38.00 , hence if you choose to buy at this support, give yourself some buffer. A stop loss at 37-36.5 is recommended. However, should price fall below 37.00 , it is most likely to fall into the bear zone. One should not hold beyond this point. The EV theme have been stalled for quite sometime since Jan 2021. Market have moved on to another theme, such as covid recovery theme (airlines, cruise, retails).
NYSE:NIO
by NimbusCapital
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