Otto Marine

OTTO Marine
Downtrend using counter trend strategy
Entry 35.5c S 34c P 40c, 42c
Resting at strong classical support. Long tail signify strong support reduced the bearishness. MACD line and histogram divergence, Stochastic divergence.
If it bounce off from here and break the resistance, a double bottom might be formed giving this trade a 48% profit. If not, you can sell at immediate resistance with 18% returns.
However as it is a counter trend strategy, there is more risk involved. Keep your stop loss in place and risk will be capped.
Vested interest. Disclaimer applies.
Articles from NextInsight: [url=http://www.nextinsight.net
/story-archive-mainmenu-60/903-2010-/2820-otto-marine-1h10-revenues-up-645-at-s4063-million]6aug10[/url] [url=http://www.nextinsight.net
/story-archive-mainmenu-60/903-2010-/2820-otto-marine-1h10-revenues-up-645-at-s4063-million/content/article/906-2010-/2623-valuetronics-otto-marine--what-analysts-now-say-]28Jun10[/url]

Possible double bottom in the making

Next few days will be very crucial if the downtrend line can be broken. Today the sentiment is very good with last hour of continuous buy up. Think 35.5c will hold as a support and also confirmed as a major support! Whew. But I will still put my stop loss at 34c if needed as it is still a downtrend so risk is definitely much higher playing counter trend. My confidence is strengthened with the candlestick telling me the stories. The recent one black candle with tail telling me bear has problem pushing counter down and confirm 35.5c as support. The next few candles are doji telling me bear is almost giving up the battle with the bull. Today candle is a pivot telling us bull is trying to take over from the bear. My profit target will be the recent high and I may add more position if 37-37.5c is reached using the Guppy grow up method. To reduce my risk, I will continue to build position in this counter if needed and selling stocks that is in the red. Of cos this counter is not without scare as 1000 lots is sell down at 35.5c which I think he/she will be heart broken if 37.5 cents is broken to confirm the downtrend has ended. Well all this have still not happened so let the counter tell us the story. Overconfidence will only kill us! Do read the previous post on Otto.

Will be waiting till the end of day to confirm the closing of candle. Once confirmed, it will be a good time to enter on higher low! Shortist will also cover their short and thus adding to the buying power. Yesterday a reversal signal (actually happening for several days already) and today break trendline with high volume. Still my instinct calling me to be cautious and continue to place my stop loss at 34c (kernna once by asiatravel). If a higher low really formed will enter again. Once higher high appears trend will confirm.

This is the chart I’ve yet to post. Think I’ve forgotten about it. Entry at 35.5c while it is now at line resistance. Will this counter surprise us again? As of now it is have a dark cloud cover. I’m looking to enter more lots when the purple line breaks. The shallower the better to form a 5 star flag formation? 
image link: ezinvest.files.wordpress.com/2010/09/201...ne-limited-gd-rr.png

What a long black bar... will it form become another oceanus? 52 cents is quite far away.

Hey plaktoz, I found your chart readings through a random google search. What do you think of Otto now at 14.5 cents? Big fall since Sept last year --- the chairman's buying and buying in the past 2 weeks puts this on my radar screen. Wat do you think?