Genting has gained 20% & broken the 1.40 resistance since I first mentioned about this stock’s potential. The seasonal Santa rally was slightly delayed for US stock market, but turned up in droves for this & the STI. It is peeking above its 200DMA & overbought on the daily RSI. Now about 1.38 has become short term support & 1.48 is next resistance, followed by 1.50.
I would wait for a pullback short term back to its 10 or 20DMA before considering long, if one didn’t get in on the seasonal rally trade earlier on due to the following: regarding the US fiscal compromise, basically they have agreed on marginal tax increases & nothing else been done. Here are comments by Greg Mankiw. Upcoming soon will be the US debt ceiling & delayed sequester fight, so watch what S&P, Moodys & Fitch may have to say about this. A reminder of what happened in 2011.
Genting has gained >8% since I wrote about it having upside potential 3 weeks back. Next few days may see some weakness, but I’m expecting the seasonal Xmas rally into Dec 31, so its a ticket to ride for most mid-high beta stocks. Early 2013 outlook is very murky so consider taking profit around 1.40 resistance, as this still isn’t a buy and hold period.
Recently Genting has fallen out of favor among buyers & analysts, & its price seems to have found an intermediate support at 1.20, near its 23.6% fib extension. I’d take a short term bet on the “house” for this casino to range back up to its 38.2% fib extension, which coincides with its 50DMA & its falling resistance trend line. A longer term breakout is likely to occur if it moves & stays above 1.40. Lower support is 1.11 & the psychological 1.00.
A spin which may catalyze its price is if there are rumors/intentions to “REIT” the casino’s property Resorts World Singapore. Link to related news article. This has already made positive price effects on its sector peers.