Monday, November 19, 2018

Investing in a high return PUT Derivative Warrant (DW) TASC01P1903A

[ This educational idea studies an hourly graph of SET:TASCO, a big asphalt refining company in Thailand. The aim of this study is to learn spotting a setup for a new downtrend so that a PUT Derivative Warrant referencing this stock could be entered for short-term investments. 

With Graph Reader Pro 4.0 for TradingView, many tasks for this study are done automatically. From the left of the chart, CC59 resistance (orange line) and CC59 support (light blue line) are generated by completions of -9 and +9 at 15.50 THB and 15.20 THB respectively. The price goes from between these lines down to below the light blue line to set the first "Min" point. Two bars later, the "MACD<Sig" text appears on the graph. Four bars later, the SMA3 line changes its color to green to show that the MACD value is increasing. Four bars later, the "MACD>Sig" label is printed to show that the MACD value is now higher than its own SMA9. This confirms a new uptrend. In addition, a series of positive CC59 counting is started. It is completed with the +9 bar. At this point the new CC59 support line is drawn at 14.90 THB. The price is also now crosses above both original light blue and orange lines. After that a tall bullish "Anchor" bar appears to create an "RSI>70" warning. The highest price of 16.10 THB is marked manually to see whether the price movement could go higher from here. Two bars later, the second "Min" point is printed. A dotted yellow demand line linking both "Min" points is then drawn manually to check for the beginning of a new downtrend. 

Four bars later the SMA3 line changes its color to red showing that the MACD value is now decreasing. The price bar also closes below the dotted yellow demand line. At 20181018 10:00, the label "MACD<Sig" is printed to confirm a new downtrend. This is an opportunity to buy TASC01P1903A PUT derivative warrant referencing SET:TASCO at the price 0.54 THB. At 20181024 09:00 (six days later), the price of SET:TASCO closes below the new CC59 support line (14.90 THB) while the price of TASC01P1903A PUT derivative warrant hits its previous high. This is a good exit point at 0.64 THB since the return of this investment is already +18.5%. To get invited to use the Graph Reader Pro 4.0 for TradingView, please contact Dr.Graph ]

No comments:

Post a Comment