After three years of not blogging, I have come back again. Over these three years, I have continued with my studies on Technical analysis but due to other commitments, recovery from a bad fall and my day job have adruptly stopped blogging.
This time I will try to continue with my bloging on some of the interesting prices that are available on the SGX.
A look at Dairy Farm,
Dairy Farm's share price has dropped quite significantly over the past year from $ 9.77 to $5.88.
Looking at the dividend yield, it is 3.33%.
A quick look at the chart below from chart nexus shows that the share price has been in consolidation for a while.
An inverse head and shoulder is in the process of being formed. With a potential neckline at the $6.21. In order for it to be symmetrical, the shoulder should end about mid may,where it will coincide with the downtrend line from 11 may 2015 and 14 jul 2015.
The upside targets $6.81 which is where we have some consolidation and 161% extension from the low at $5.55 and $6.21 recent top.
A long at the $5.80 looks attractive with a stop below $5.50 if you are trading. Risk is $0.40. Rewards $1.00. Risk reward ratio 2:1.
Dairy farm has a large parent called Jardine Matheson, so may be a good stock to hold if not trading.
Of course, in order to identify a good stock, fundamental analysis plays a part, which I am currently studying.
Dairy farm has been consistently paying a dividend of 23 cents. At $5.80, dividend yield will be 3.96%.
Disclaimer: This is not investment advice and any loses arising from this post is not the responsibility of the author.
