Hyflux anyone?

After a long rest, I have decided a separate strategy. My last strategy caused me to get into too much details and focus on everyday changes. This time round, I find it is much better to look from higher time frame, and everything would seems to slow down. I think this would be better for my character.

So there I was glancing through stocks after stocks for my leisure, and I came across Hyflux. I am sure it is quite a prominant figure in the market, even my wife know the lady CEO's name, must be something and company should not be that bad neither.



Fig 1. Hyflux weekly chart

I was in for a shock when I have a first look at the stock. What's in front of me is a double top which has broken through the neck line, went down and rebounded back to the neck area. Base on the theory of Double Top (DT) it is quite high time for it to proceed south. Measurement of DT yield SGD0.215, down from the present point of 2.08. So is it shrinking to 1/10 of its present size? It is a possibility since it is now half its original full size.

The interesting part are the Stochastic and RSI indicators, they are trending higher highs and peaking for the present moment, for Daily, Weekly and monthly chart. Both indicators are turning back south, I guess this would mean the price would follow suit.

An interesting point to note is the rebounding back to the trend line, it penetrated and broke up-wards. I have been kaypoing with some Forex stuffs (since my data supplier bundled it in for me). I found that many currencies when compared with SGD rebounded from a low and broke through the neck lines of their top formation. May be there are still hope that the top formation would break down(Opp! not supposed to "hope". Bad, bad boy).

For the time being, I have my doubt and would stay far from this stock, I might still be wrong though.