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ARA: Divested at $1.26 and $1.30.

Wednesday, October 12, 2011

Trading volume for ARA expanded today, being the highest in six sessions, which helped to form a long wickless white candle. This is the most bullish of candles. Could we see its share price climbing higher tomorrow? We could.

However, I have completely divested my long position in ARA and would not be able to benefit from further appreciation in its share price, if any. Completely? Yes. My overnight sell orders at $1.26 and $1.30 were both filled today. So, does it mean that I believe that ARA's share price has peaked for now? I don't know if it has peaked but I feel that it is nearing a longer term and, most likely, stronger resistance.

Longer term resistance? Connecting the highs of 31 May, 1 Aug and 1 Sep will give us a clear trendline which approximates the declining 50dMA which is at $1.32 thereabouts. If this resistance could be overcome, we could see the counter's share price moving higher. Otherwise, it would retrace to supports.

I simply followed my TA (for what it is worth) and divested as the gap at $1.26 was filled and at $1.30 which is just one bid away from gap fill at $1.305. The latter was filled after the market closed at 5.04pm.

Good luck to all who are still vested.

Related post:
ARA: Partial divestment at $1.18.


Anonymous said...

Question is will you buy again should the price drops? Until how low?

b said...


I also divested all my ara at 1.27 today. a 15% gain in a week. Nt too bad for a noob like me haha.

Anyway, i am looking forward to buying more ara on if it drops in future :)


AK71 said...

Hi Anonymous,

If we are following a strategy of FA + TA, we will buy into ARA again if its share price should weaken as this is a fundamentally sound company. When to buy? At supports, of course. ;)

Could you include your name or initials in future comments?

AK71 said...

Hi B,

Congratulations! I believe your percentage gain is higher than mine. ;)

SnOOpy168 said...

good gains there AK.

IMHO, this is a company has a sound business model and stable clients. So

I am waiting for things to pick up and go higher.

Perhaps not to long later, S$1.80++....

AK71 said...

Hi SnOOpy168,

$1.80+ per share for ARA in time? I believe it will be too, everything else remaining equal. Just don't know when exactly. ;)

In the meantime, I enjoy a little bit of trading. :)

Hwang said...

Good trade AK!

I still have those bought at 1.35. Waiting for Mr Market to grant me my wish. Haha..

AK71 said...

Hi Hwang,

Mr. Market is unpredictable and even though I think resistance at $1.31 is rather strong, who knows? Good luck. :)

Hwang said...

Well, guess Mr Market doesn't want to grant my wish of >1.35.

But today was quite surprised. No decline at close even though morning was like -0.05.

AK71 said...

Hi Hwang,

I still think that any near term pull back to supports is a good buying opportunity as the market seems to be setting itself up for a stronger push upwards.

Of course, trying to guess Mr. Market's intentions has always been a hazardous thing to do. ;p

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