Tuesday, May 15, 2012

Congrats!! Taking some Profit on Short Position

 SGX now trading at 6.34, we have been shorting this stock since 6.77, now i feel it is a good time to take some profit off the table because it is now at the channel support level. However this does not mean that there will be a reversal immediately, The first sign of reversal will be price breaking above the previous day high. Or closing 5% above the recent lowest point.
Wilmar currently trading at $4.03, we call for a  SHORT on wilmar one week ago. Just one day before the result announcement. We called to enter at 4.77(Next day gap down, we entered next day at 4.72), and target at 4.40 and 4.00.(check out the post here) When i am setting the target, some people may think it is abit ridiculous to set a target at 4.00. Yes, even i find a bit far to reach. But that is also means we got very good risk/reward ratio. Well, Congrats if u have followed this trade. Will keep you all updated if there is any other good trade.