Bad but not so bad day! (OCBC bottom catch)

Today market collasped following yesterday night's collaspe in the US. STI at one point was down more than 100 points. Last week sensing the weakness in the market, I have gotten out of my long term positions in Alliance Mineral at $0.41 and China Moly at $5.8 yesterday (Notified in our group) However, still holding onto QT vascular due to its underlying strength even in the weak market.

While today market collapsed and there were waves of non stop selling, we were able to spot OCBC near its bottom during capitulation.

I gave out a call on OCBC when it was trading at 12.06/12.07 and entered at 12.07. It later bounced to a high of 12.25 and closed at 12.22.

The chart and reasons why there was an entry.

Clearly on the hourly chart, there were signs of capitulation volume and also selling began to dry up before we see a bullish bar.

Based on the daily chart it was clear oversold given its recent two gap downs.

Hence risk reward was good and we decided take a position with a stop loss of $11.98 and a target of $12.5 and above.

We are glad that amidst a sad day our group members in Satki Trader could take home some joy and a bargain buy of ocbc.

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