Will history repeats itself for Yeahka?I will wait for a nice pullback perhaps end week before going long ......
9923 trade ideas
Yeahka ready for a new rally? Last year Yeahka had a great rally when Chinese SaaS stocks received attention from ARKK buys.
This has come all the way down, now it is undervalued.
Cathie is still holding.
A big guy from Tencent running the show.
Tencent owns a partial stake.
Great company. Square of china. Huge TAM.
Yes, there is competition. However, market is big enough to go to SQ-like valuation (that is a 5x). Give it a few years.
This is my personal opinion and not investment advice.
SEHK 9923 Yeahka - Change of trend!I first spotted an opportunity in Yeahka when it IPO-ed in June. Saw a wedge pattern (Like 6969 Smoore and 909 Mingyuan Cloud ) and rode it all the way from $17+ till the $60 level.
Since then, the bubble popped and has been on a sustained downtrend till recently - prices have started to make higher lows indicating signs of an uptrend. Additionally, recent news of the company acquiring stakes in Beijing Chuangxingzhong Technologies shows Yeahka's commitment in expanding their business. Yeahka has also recently turned profitable with high expected growth rates in the future (PEG of 0.6x).
Already have a small position and will add to it if everything plays out as expected! (Half to trade and half to ride the trend)
**ARK has also started buying small portions of Yeahka recently. Although not a significant amount, it is a possible indication of confidence in the future of this company.
YEAHKA bottomBought the initial IPO and sold near the high after a monster parabolic move in July. Since than the stock has continued to disappoint and crept lower and lower to find its base. Has it found its bottom after ticking the IPO low vwap? continued higher highs and lower lows and following a trend line from IPO date. This stock can be quite volatile but seems to be finding stability on its journey.
Side note: ARKF has been buying more recently.
Why is the colour red a fear colour ?More than any colours, RED halts what we are doing and demands our immediate attention.
Like this chart, the moment we see this 40% plunge and a very sharp long red candle, our mind conjures images of losses, further plunge, bear market is coming, etc.
Most people when they encounter lots of blood presence are too shocked to do anything (unless you are a trained medical professional). That is why the RED traffic lights are so powerful. It stops cars and prevent accidents to a large extent.
When traders see red candles, it instil a sense of fear, stress and danger. Our body begins to operate like the prehistoric hunter - fight or flight response.
Then, we often said that to win in the stock market, we must buy low and sell high. How can we buy low? Like this , this is buying low or accumulating for those who are already in this share and believe in the growth story.
Train your eyes and heart to withstand the colour of red and perhaps start practising on a demo account on certain pairs or stocks where you buy on a red candle and see what are the consequences. Of course, the bigger time frame must support its bullish move like in this stock.
Your very own real experience would feedback to you that it has been an obstacle in your mind all along, tricking you not to buy when you see a red candle. And that also takes away a lot of good opportunities.
If you want to play safe, then wait for a bullish signal or buy at 53 level.
Watch 16.64 for YeahkaAnother Tencent back investment , read about Yeahka here.
The support at 16.64 is crucial as it will determine whether the price will continue to trend higher or heads south if it breaks down.
Thus, if I have to take a quick short term trade , I would wait for the price action to settle at this level before deciding.
This is a symmetrical triangle pattern which means it can break up or down. And it need not reach the apex of the triangle before it breaks out.
If you have not read about my views on buying IPO, please do so here .
Note that just because it is backed by a strong company like Tencents does not mean that it will be bullish. It might be after some time so the entry timing becomes crucial. You can bet on its growth story as an early adopter and buy at IPO price thereabout or wait for it to prove itself with increasing sales, net income, market acceptance, etc.
Again, no right or wrong, just investors' preferences and style.
