China Minzhong: Partial divestment at $1.01.

My sell order for China Minzhong at $1.01 was filled today. I retained some 50% of my investment in the company in case resistance should break which would send share price higher.

There is always a chance of a retracement in share price to supports. So, locking in some gains at resistance frees up resources for me to take advantage of any such retracement if it should happen.

Whether share price should rise or fall, I have a plan in place and could potentially benefit either way.

With 99c resistance broken, the declining 100w MA which approximates $1.03 is the immediate resistance to watch. Being a long term MA, the 100w MA is likely to be a tough nut to crack in the shorter term.

If I were to hazard a guess, I would say the 100w MA could force share price lower. In such an instance, share price could decline to as low as 80c which is where we find a flattening 50w MA. 80c is some 20% lower than where we are now.

However, in the event that resistance provided by the 100w MA is broken, Mr. Market is likely to become quite euphoric and we could see the gap formed in September 2011 covered at $1.20 eventually in such a case.

Since risk and reward analysis gives me a 50/50 chance either way, divesting 50% of my investment seems like a logical thing to do.

Related post:
China Minzhong: Share price to go higher.

Big chill in Europe (and Singapore).

This is something funny that just happened.

A colleague was saying out loud that there is a big chill in Europe. Another colleague asked if they were also having cooling measures in Europe?

This shows how, after seven rounds, "cooling measures" as a phrase has become significantly entrenched in the minds of Singaporeans.

As people in Europe experience heavy snow and blizzards far away from us in Singapore, we are experiencing chills in the form of property cooling measures.

About ten months ago, I wondered in a blog post if there would be more cooling measures and if they would extend to industrial properties. I also opined that developers would probably be offering more discounts in time to come. At that time, many friends were still very optimistic about the property market.

Well, the government has not disappointed. Neither have the developers.

Would we see a round 8? The number 8 could be an auspicious start to the Chinese New Year. No?

Related post:
More cooling measures on the way?