This will be a series of a few posts on how I am deriving the final spin off price of $YZJ Fin Hldg(YF8.SI)$ . I am not a certified financal advisor and this is not financial advice.
As the Singapore market continue to rally, I noticed some interesting trends. You can also easily verify my claim. Stocks that are on the rise typically have a strong MA5 and MA10 which must be true if the stock if the stock is up trend since MA is computed as the simple average of the window period price.
Now that is not an interesting information but what if i told you now that these 2 indicators hold very interesing information about exit and entry. Stocks that typically rise above the MA5 espeically with strong momentum tends to lean back close to the MA5 during correction. Falling below MA5 and taking shelter around the MA10 could signal a potential reversal or a buying opportunity. Feel free to backtest this strategy youself for the period May onward.
STI has been, and is strong. And well respects this MA5 by consistently keeping the close above the MA5 to maintain her upward trend even on a "red" day. Although some signs of weakness here and there, this statement I am making is on average valid and true.
This background information is just part of the puzzle on how I will be using these 2 indicators to back calculate the final spin off price of YZJ Fin. More will be shared in due time.
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