Swiber closed $1.04 on 12th Nov 2010 following the released of its earning the day before. From the earning, its profit fell as compared to the same quarter in the previous year. However, an encouraging factor looking forwards is its US$800m order book that could sustain its earning for the next 2 years. With that in mind, Swiber was able to hold up at its $1.00 support presently.
Technically, Swiber still trading within an uptrend channel established since June 2010. More interesting was it is also developing a symmetrical triangle within the uptrend channel with the apex of the triangle at $1.05 ( a resistance it tried to clear before the result ). A breakout from the symmetrical triangle with heavy volume could see a potential measured target of at least $1.30.
At the moment a breakdown at $1.00 will invalidate the uptrend channel and also the symmetrical triangle formation. A breakout from $1.09 and $1.15 will be breakout of the symmetrical triangle and uptrend channel.
Strategy :-
1. A buy at around the apex price of $1.05 and wait for breakout of symmetrical triangle at $1.09 and uptrend channel at $1.15. A cut-loss policy at $0.98 will enable investors/traders to minimum loss as this will give a rewards-to-risk ratio of 3.57 with target price to sell at $1.30.
2. Monitor for breakout of symmetrical triangle at $1.09 with heavy volume, wait for back test at the breakout point at $1.09 and buy into it. A cut-loss policy at $0.98 and this will provide a rewards-to-risk ratio of 1.91 with target price to sell at $1.30
