I am staying out of this sideways market for now. Normally I would determine a channel for a sideways market and scoop up the bottom, but this time, the channel is too narrow for a reasonable reward/risk ratio. After scanning the STI, Capitaland, Wilmar, OCBC, UOB and DBS, I found no favourable conditions for entry. All of them have a reward/risk ratio that is less than 3:1. Some have noticeable dwindling volume over a period of 3 months, suggesting exhaustion of the money inflow.
So now I will be looking for a breakout, which will broaden the trading range before I consider coming in again.
No comments:
Post a Comment