Hengyuan:
2 February 2018, Friday, 8.57am Singapore Time
Attached is the technicals for Hengyuan, an oil stock listed in the Malaysia KLSE. The orange circled region is my live warnings in 1H-2016, 2H-2016 and 1H-2017 calling for buys on quality oil stocks, during which I picked up Hibiscus Petroleum Bhd (KLSE: 5199) at 0.29-0.30 (refer to: http://donovan-ang.blogspot.sg/2016/10/hibiscus-petroleum-20-october-2016.html). Hibiscus has already given me at least +300% profits. In 1H-2016, at US$30 per barrel, when the world was calling for US$10 per barrel crude oil, I declared in my live analyses that $US30 per barrel would be the rock bottom for oil.
In Technical Price Structure, Hengyuan is long term uptrend, mid term sideways and short term correction. This ensures maximum confusion smoke bomb is thrown into the market to confuse traders and investors.
Hengyuan has already done a regression to the mean; not only that, it is also doing a backtest of the long term support. Strong stocks normally have their supports tested successfully. There was also a humongous volume of support for Hengyuan in January of 2018. This is a volume absorption of all previous red volume sells. Even if Hengyuan breaks the support and goes below blue channel support, it will make another new channel to progress with an entirely new channel of uptrend. This is because it has previously broken the light blue resistance of the blue channel with fundamentals supporting it.
Hengyuan is within the blue channel as illustrated. Based on Channel progression, Hengyuan's next target is $38.00. If it becomes a large cap stock which is likely the eventual case, it will be included into the KLCI as an index constituent stock in the future.
In Technical Price Structure, Hengyuan is long term uptrend, mid term sideways and short term correction. This ensures maximum confusion smoke bomb is thrown into the market to confuse traders and investors.
Hengyuan has already done a regression to the mean; not only that, it is also doing a backtest of the long term support. Strong stocks normally have their supports tested successfully. There was also a humongous volume of support for Hengyuan in January of 2018. This is a volume absorption of all previous red volume sells. Even if Hengyuan breaks the support and goes below blue channel support, it will make another new channel to progress with an entirely new channel of uptrend. This is because it has previously broken the light blue resistance of the blue channel with fundamentals supporting it.
Hengyuan is within the blue channel as illustrated. Based on Channel progression, Hengyuan's next target is $38.00. If it becomes a large cap stock which is likely the eventual case, it will be included into the KLCI as an index constituent stock in the future.
The Donovan Norfolk Technical Rating:
Bullish
(Hengyuan To Continue To Set Historical High Never Seen Before; it is supported by economic cycle fundamentals)
(Hengyuan To Continue To Set Historical High Never Seen Before; it is supported by economic cycle fundamentals)
(Expected to rally for the rest of 2018 and into 2019)
Past Related Analyses (MUST READ IN DETAIL):
http://donovan-ang.blogspot.sg/2018/01/crude-oil-target-us175-to-us180-per.html
https://donovan-ang.blogspot.sg/search/label/Reuters-Jefferies%20Commodities%20CRB%20Index
https://donovan-ang.blogspot.sg/2018/01/the-us-dollar-super-big-downwave-28.html
http://donovan-ang.blogspot.sg/2017/10/baltic-dry-index-shipping-industry-and.html
Additional Related (Optional to read):
https://donovan-ang.blogspot.sg/search/label/SembCorp%20Marine
https://donovan-ang.blogspot.sg/search/label/Reuters-Jefferies%20Commodities%20CRB%20Index
https://donovan-ang.blogspot.sg/2018/01/the-us-dollar-super-big-downwave-28.html
http://donovan-ang.blogspot.sg/2017/10/baltic-dry-index-shipping-industry-and.html
Additional Related (Optional to read):
https://donovan-ang.blogspot.sg/search/label/SembCorp%20Marine
https://donovan-ang.blogspot.sg/search/label/Hibiscus%20Petroleum
https://donovan-ang.blogspot.sg/search/label/Chesapeake%20Energy%20Corp
https://donovan-ang.blogspot.sg/search/label/Chesapeake%20Energy%20Corp
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