Venture Corp - new warrant to trade further upside should tech stock reclaim $17.40 resistance
🆕Macquarie has listed a new $Venture(V03.SI)$ (VMS) call warrant $Venture MB eCW270226(XLPW.SI)$ for investors to obtain a leveraged exposure to the tech stock in the near-term!
✳Costing $0.090 while VMS trades at $17 this morning as of 9AM, the warrant requires a lower capital outlay and will move approximately 5.3% for a 1% move in VMS shares based on its current effective gearing level
VMS' year-to-date gains of 12.7% lags that of the Straits Times Index's 22.8% return as well as the FTSE ST Technology Index's 67% gain
💫VMS surged to a 52-week high of $18.65 on 7 May on strong Q1 results and the US-China tariff truce, but has since pulled back around 9% from that peak and currently trading in the middle of its 52-week range
On 7 Aug alone, after announcing its Q2 results which was 10% higher from the previous year to $63 million, VMS jumped 6% after the company raised its interim dividend to 30 cents
The better than expected earnings came largely from better-than-expected revenue of $499 million from the segments of Test & Measurement, Networking & Communications, and Semiconductor Related Equipment in "Portfolio B"
Looking ahead, VMS said that they see demand continuing to strengthen within the aforementioned segments in "Portfolio B"
Looking at the stock's technicals, Bloomberg's AskB makes the observation that VMS is in a constructive short-term setup, with its price above all three key moving averages - a bullish alignment
AskB notes that its MACD has just made a bullish crossover, while its RSI of 58.7 sits in neutral to bullish territory, well clear of the oversold zone (28.8 trough in late Feb) and with room to run before hitting overbought (>70)
AskB believes the key test is whether the stock can reclaim the SGD 17.40 resistance (upper Bollinger Band) and push back toward the May high of SGD 18.65
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- snoozii·08-19 15:33MACD crossover and RSI at 58.7 do lean bullish, but volume on a clean push through 17.40 matters more. If that comes in, 18.65 is back in play fastLikeReport