IAG – Update

Posted on | by Leon Hinde

IAG:ASX is a potential counter-trend recovery trade that’s now on our radar.

6/5 Since writing the above post IAG has continued to move higher.

31/5 Short-term investors may stick with the position as long as the price activity remains above the 10-day average.

Trade Set Up Explained

Posted on | by Leon Hinde

To help our members better understand the principles of a “trade set up” the following educational post and video has been prepared.

PP is the pivot point and SMA is the simple moving average. GICS is the ASX industry classification. These are all headings in the “Trade Table” window.

For short-term traders, the timing tool for entering a “buy” can be supported by overlaying a 3 system check.

1.       Main Algo Engine signal, (green box).

2.       PP secondary signal, (green up arrow).

3.       SMA momentum check to ensure the price is above the 10-day simple moving average, (red smoothing line over price graph).

As numbered below.

An alternative to waiting for the price to be above the 10-day moving average can be to use the stochastic and look for the black line to be turning up through the red line. This is referred to in my market commentary as the “short-term momentum indicators”.

Traders will recognise that the stochastic reacts much faster and therefore, can provide an entry confirmation closer to the recent low price, whereas, waiting for a cross above the 10-day average is a slightly slower but very effective way of not jumping the gun and ensuring the buying momentum has at least started to move in your favour.

The following video may help clarify things further and if you’re still unsure, please call our office on 1300 614 002.

Cure ETF – Buy

Posted on | by Leon Hinde

CURE:AXW is under Algo Engine buy conditions and the current pullback provides another buying opportunity.

ETFS S&P Biotech ETF (ASX Code: CURE) offers investors exposure to U.S. biotechnology companies. These companies are engaged in research, development, manufacturing and/or marketing of products based on genetic analysis and genetic engineering.

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Pinduoduo – Earnings Release

Posted on | by Leon Hinde

PDD:NAS is now under Algo Engine buy conditions. The company is China’s largest agriculture and interactive commerce platform.

Pinduoduo has surpassed Alibaba as China’s largest e-commerce company with 788 million active users according to its latest quarterly earnings report.

We expect buying interest to build above the $125 support level.

Q121 earnings showed continued growth with revenue increasing 239% to 22.2 billion yuan ($3.4 billion) in the three months ended March, beating consensus analyst estimates.

The number of annual active buyers for the 12 months ended March increased to 823.8 million, making Pinduoduo the most widely used e-commerce platform in China.