REI :
Thats the news when she was listed, at that time the overall market sentiment is so so, I was being offered to join in to subscribe the IPO. But I found nowadays buying IPO is worst than playing Banker/Player (Baccarat) in Genting casino if I do not intend to become a long term investor. The probability of going down is 67% which is lower that playing Baccarat. And now she has fallen more than 45% from her IPO price , is she attractive ? I would say a counter trend trading is possible but the odds is still low.
So, one will ask should I cut loss now and buy back when she becomes lower ? Hmm, see the oval shadowed area, that's where one should cut loss (around 2.04) when she started to breakdown from her initial support (2.04) created around July11. And if he/she has purchase her during the IPO , she will have actual loss of around 45%, OUCHH !!! that too MUCH PAIN to bear. If really cut and she does not goes down anymore, then suddenly she take off from this area and reach back RM2 ? that will be heart attack...
Anyway, if you look in fundamental point of view, she still is a strong company.
Now, she has started to rebound and heading toward 1.61 (immediate resistance) and 1.80 (2nd resistance). Given that Dow Jones drop 253 pts last Friday but our KLCI indicators is showing a rebound is on the cards. She will have a hard time reaching there if our CI is not rebounding. Lets see how it goes.
I remember attending a talk by a stock trading system trainer, he mentioned when an IPO drops to a very low point, there will be a time where she is ripe to rebound (significantly in a V shape !). We can catch this to earn some decent profit, and I will be on the look up for this. One example is Handal shown below :
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