Sky Petrol 170608

Sky China Petrol formed another Gravestone Doji today. The previous time we saw Sky China Petrol forming one was on 22 may. At that time, the reversal did not materialise and we saw Sky China Petrol plummeting to an all time low of 0.255 today.

The last time Sky China Petrol traded below 0.260 was way back in nov 2005, and we have not seen anything this low since. If Sky China Petrol does not reverse soon, we could see it hit its historical low of 0.240.

For the Gravestone Doji to indicate a Bullish reversal, we would have to see Sky China Petrol opening at least above the long term downtrend resistance (mid red), better still if it opens above 0.265.



For tomorrow :

Support @ 0.255, 0.251 (low pink), 0.245 (low red), 0.240 (historical low)
Resistance @ 0.260 (mid red), 0.271 (upp pink), 0.280

Hope you find my analysis helpful. Thank you for your support !!

Sky Petrol Research Report

by DMG & Partners (3 June)

Revenue for the 1Q2008 increased 92% y-o-y from $5.1m to $9.7m mainly due to the two added business segments of extraction and drilling Services. NPAT, however, only increased by 10% y-o-y for the period.

This boiled down to lower gross profit margins (which cannot be directly compared to 1Q2007 due to change in business segments) and higher finance costs from the convertible bonds with US-based Apollo Management.

Gross margins for 1Q2008 fell 15.9 ppt from 61.9% to 46%. In light of Sky China Petrol's difficulties faced towards expanding the number of oil wells it can work on, coupled with normalising margins and our assumptions of subsiding oil prices, we have lowered out revenue estimates by 10.5% from $53.5m to $47.9m, and EPS estimates by 39.1% from 7.8 cents to 4.8 cents in FY2008.

This lowers our 12-month target price to a PER multiple of 9 times.

-Research Report by DMG & Partners(3 June)

Sky Petrol 300508

Even after the Gravestone Doji on 22 may, there is still no sign of a trend reversal for Sky China Petrol. If we go back further to 14 mar, we can see another Gravestone Doji formed.

The trend for Sky China Petrol now is a little similar to the trend during the march period. So we could see more selling before Sky China Petrol reverses its down trend.

Looks like more patience is needed.



For monday :

Support @ 0.305 (low blue), 0.304 (mid red), 0.300
Resistance @ 0.315 (green --), 0.322 (upp red), 0.323 (upp blue), 0.330 (light blue --)

Good Luck !!

Sky Petrol 230508

After testing, and failing to break, the 0.375 resistance (red --) and 24 apr, Sky China Petrol went downtrend from 25 apr onwards, breaking the 0.345 support (blue --) and 0.330 support (light blue --).



Sky China Petrol managed to find support at the 0.315 support (green --) and also formed a Gravestone Doji on 22 may when it closed right on the downtrend support (mid red).

Since the trend prior to the Gravestone Doji was a downtrend, we could see the start of a trend reversal. For that to happen, Sky China Petrol would have to continue to trade with the uptrend channel (blue) and also break the 0.330 resistance (light blue --).

For monday :

Support @ 0.320, 0.318 (low blue), 0.315 (green --), 0.314 (mid red)
Resistance @ 0.330 (light blue --), 0.333 (upp red), 0.335 (upp blue), 0.345 (blue --)

Good Luck !!

Sky Petrol 250408

After testing the 0.375 resistance level (red ...) twice on 23 and 24 apr, Sky Petrol softened today, tested and closed right on the 0.360 support (mid red, mid red --, pink ...).



If Sky Petrol can open above these supports on monday, there's a chance it might test the downtrend resistances (upp red, upp red --) next week.

If Sky Petrol breaks the uptrend support (mid blue), we might see it testing the 0.345 support (blue --).

For monday :

Support @ 0.360 (pink ...), 0.357 (mid red, mid red --), 0.356 (mid blue), 0.349 (low blue), 0.345 (blue --)
Resistance @ 0.375 (mid red --, red ....), 0.3765 (upp red), 0.385 (upp blue)

Good Luck !!

Sky Petrol 110408

After breaking the 0.345 resistance (blue --) on 8 apr, Sky Petrol seem to have weakened but still managed to bounce off the 0.345 resistance turned support (blue --).



Sky Petrol could trade sideways next week. If Sky Petrol doesn't break the 0.345 support (blue --), there's a good chance it may test the 0.365 resistance (pink ...) again.

If the 0.345 support (blue --) breaks, Sky Petrol may revisit the 0.315 support (light blue --).

For monday :

Support @ 0.338 (low blue), 0.345 (blue --), 0.331 (low red, low red --), 0.315 (light blue --)
Resistance @ 0.350 (upp blue, mid blue), 0.358 (upp red), 0.365 (pink ...)

Good Luck !!

Sky Petrol 280308

Sky China Petrol broke the uptrend resistance (upp green) and 0.335 psychological resistance (blue --) today with volume. The last time Sky China Petrol had a volume of more than 10m lots was way back on 19 feb.



I've readjusted the trendlines for Sky China Petrol. From the chart, Sky China Petrol could be on the tail end of a double-bottom formation.

In order for the downtrend to be effectively reverse, Sky China Petrol would have to break the neckline resistance of 0.375 (red ...).

If Sky China Petrol can break the neckline with volume convincingly, we might see it testing the next neckline resistance of 0.460 (green --).

For the short term, if Sky China Petrol continues to trade within the uptrend channel (blue), we might see it testing the 0.375 neckline next week.

For monday :

Support @ 0.335 (blue --), 0.3237 (upp green), 0.315 (light blue --), 0.3093 (low green, low blue).
Resistance @ 0.3534 (low red --), 0.360 (upp blue), 0.375 (red ...).

Good Luck !!

Sky Petrol 070308

Nothing much has changed for Sky Petrol as it has been trading sideways since 21 feb.



For monday :

Support @ 0.335 (blue --), 0.332 (low red), 0.315 (light blue --)
Resistance @ 0.343 (mid red), 0.358 (upp red)

Good Luck !!

Sky Petrol 290208

Sky Petrol formed a Gravestone Doji on 27 feb, and the confirmation of a downtrend came on the next day when Sky Petrol gapped down and closed even lower. The Gravestone Doji represents the graves of the bulls that have died defending their territory.



Sky Petrol continues to trade within the downtrend channel (red). We should see it testing the 1st psychological support 0f 0.335 very soon, maybe even on monday.

For monday :

Support @ 0.335 (blue --), 0.333 (low red), 0.315 (light blue --)
Resistance @ 0.360 (mid red), 0.375 (upp red, low green)

Good Luck !!

Sky Petrol 260208

After hitting a high of 0.390 on 19 feb, Sky Petrol traded sideways, probably due to profit taking. I've done some housekeeping and updated the trendlines.



For tomorrow :

Support @ 0.360 (green), 0.343 (low red), 0.335 (blue --)
Resistance @ 0.367 (mid red), 0.384 (upp red)

Good Luck !!

Sky Petrol 150208

As discussed on 6 feb, the reversal signal for Sky Petrol did not quite materialise on 11 feb as it opened high and closed on the previous day's closing.



However, the signal came on 12 feb when Sky Petrol formed another Doji, this time right on the 0.315 psychological level (light blue --).

Sky Petrol broke out with volume on 13 feb, breaking the downtrend resistance (upp pink --) and the 0.335 psychological resistance (blue --) along the way.

I've added a short term uptrend channel (green), and if Sky Petrol is able to maintain this uptrend momemtum, we might even see it testing the downtrend resistance (low red) very soon.

For monday :

Support @ 0.335 (blue --, upp green), 0.320 (upp pink --), 0.315 (light blue --)
Resistance @ 0.362 (upp green), 0.366 (low red), 0.370 (low blue)

Good Luck !!

Sky Petrol 060208

Sky Petrol formed a Grave Stone Doji on 4 feb. As the trend prior to the doji was more a downtrend, there was inital hope that this Doji on 4 feb could be a reversal signal.



However, on 5 feb, Sky Petrol closed right on the psychological support of 0.315.

On 6 feb, it gap down and formed a Doji on 6 feb. To confirm a downtrend reversal (bullish morning doji star), we would need to see Sky Petrol opening at least 0.305 or higher, and closing much higher.

For monday :

Support @ 0.300 (mid pink --), 0.2888 (low pink --)
Resistance @ 0.315 (light blue --), 0.325 (blue --, upp pink --)

Good Luck !!

Sky Petrol 010208

Sky Petrol could not maintain its uptrend momentum and broke below the uptrend channel which I added on 25 jan. Sky Petrol even touched the 0.315 support on 31 jan, and broke below this support briefly on 1 feb.



If the 0.315 support breaks, we may see Sky Petrol trading within the downtrend channel (low/mid pink --).

For monday:

Support @ 0.315 (light blue --), 0.310 (mid pink --), 0.300 (low pink --)
Resistance @ 0.335 (blue --), 0.338 (low blue), 0.345 (upp pink --)

Good Luck !!

Sky Petrol 250108

Sky Petrol managed to trade above the 2 support trendlines (blue - - and light blue - -) today. I've also added a short term uptrend channel (blue).



If Sky Petrol can maintain its uptrend momentum, we might see it trying to break above the downtrend channel (pink - -) on 29 jan.

For monday :

Support @ 0.3405 (low pink - -), 0.335 (blue - -), 0.320 (low blue)
Resistance @ 0.3655 (upp blue), 0.3746 (upp pink - -), 0.4095 (low red)

Good Luck !!

Sky Petrol 180108

Although Sky Petrol managed to close above the downtrend channel (pink), it is still quite some way off the previous support of 0.465 where it was free-falling from.



The difference from the support (0.465) to the peak (0.68) is 0.215. So on theory, Sky Petrol could still hit a low of 0.250.

For monday :

Support @ 0.350 (upp pink), 0.335 (blue - -), 0.315 (light blue - -, low red - -)
Resistance @ 0.374 (upp red - -), 0.3907 (upp pink - -)

Good Luck !!

Sky Petrol 160108

Ever since failing to break the resistance convincingly on 8 jan, Sky Petrol has been free-falling within the downtrend channel (pink).



1st support level @ 0.335, which is the low around the sept 07 period.

2nd support level @ 0.315, which was from where it broke up on 20 aug 07.

Resistance 0.374 (upp pink).

Good Luck !!

Sky Petrol 110108

As discussed on 7 jan, Sky Petrol failed to maintain above the 0.460 level. It is now trading below many trendlines.



The close @ 0.395 could be a good support as it was from this level which Sky Petrol broke up on 9 oct.

For monday :

Support @ 0.388-0.390 (middle red dashed, upper orange), 0.3746 (lower orange), 0.3711 (lower red dashed)

Resistance @ 0.406 (upper red dashed), 0.410 (lower pink), 0.4246 (upper pink)

Good Luck !!

Sky Petrol 070108

With the uptrend support (lower light blue) meeting the psychological resistance (green dashed), Sky Petrol seems to be heading into a corner.



If Sky Petrol cannot break above the psychological resistance, we may see it trading within the downtrend channel (purple) soon. Sky Petrol would also need to break above the long term downtrend (lower red).

Volume on 7 jan was 2,890 lots.

For 8 jan :

Support @ 0.4456 (upper purple), 0.4307 (lower purple)
Resistance @ 0.460, 0.4677 (lower red)

Good Luck !!

Sky Petrol 040108

Sky Petrol managed to close above the psychological resistance of 0.460 (green dashed) today.



However, monday would be important for Sky petrol as we can see 2 pairs of trendlines converging.

For Monday :

Support @ 0.4526 (purple, blue converge), 0.4364 (lower purple)
Resistance @ 0.472 (red, blue converge), 0.4876 (middle blue)

Good Luck !!

Sky Petrol 020108

Short-term wise, Sky Petrol looks to be trading within the uptrend channel (blue).



However, looking at the chart, we can see that in the long term, Sky Petrol still looks to be on the downtrend (red and purple). Moreover, volume hasn't even been anywhere near the 50m mark.

For tomorrow :

Support @ 0.460 (critical), 0.425 (purple and red converge), 0.410
Resistance @ 0.477 (middle blue and red converge), 0.505 (upper blue)

Good Luck !!