Shares & Derivatives
Marco Polo Marine: Negative divergences.
By A Singaporean Stockmarket Investor (ASSI)  •  February 1, 2013
Although the fundamentals of Marco Polo Marine are sound and its future looks bright, Mr. Market is not known to respect fundamentals. Mr. Market is a creature of sentiments. Technical analysis provides a window into the collective psyche of market participants and when there are negative divergences aplenty, we should exercise caution when thinking of initiating a long position or adding to a long position.
The presence of negative divergences does not mean that the share price will definitely weaken. It does not mean that the share price will not go higher. It just means that the risk of a retracement is now higher. So, how do we respond to something like this? Personally, I have not divested any of my shares of Marco Polo Marine. I am that confident of the company's prospects. In fact, if there should be a pullback to supports, I am likely to add to my long position. ......
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By A Singaporean Stockmarket Investor (ASSI)
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