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Day April 1, 2010

Melco Crown Entertainment Ltd (MPEL) : Bullish Reversal with Kijun sen Support

I shorted MPEL when it got oversold a couple of days back.

For the last 2 days, I feel that it doesn’t seems to drop much further and this is confirmed yesterday when upon opening, the price did not go below the Kijun sen and there is a fair amount of volume transacted within the first 2 hours of trading.

With the support at Kijun sen and the price action-volume going on, I close my short position and is now long on MPEL with a Covered Call to guard against the possible weakness from the major indices including RUT.