Category: Money tips Release Date: 2006-04-25
Baosteel Warrants showed five Lianyin, yesterday was finally reached in September the biggest single-day rise since the 2.22%, to close at 1.335 yuan, trading volume significantly larger than last week, reaching 435 million. However, G Baosteel not yet out of the sideways trend in recent days, to close at 4.46 yuan, decreased slightly by 0.45%. Analysis of the two trends, we believe that they are still basically no correlation between, warrants today received the anode may be investors that its short-term indicators such as issuing buy signals KDJ actively buying lead.
For the moment, some investors, and even individual analysts, the use of technical indicators to directly analyze the trading of warrants, or the timing resistance, pressure, position and other practices, we do not agree with, but also to remind investors is important to note the applicability of this method. This is because the warrant is a derivative instrument, the price trend is mainly influenced by the underlying price trend. Therefore, if you want to determine the best time to buy sell or share should start with is the beginning of the price trend. In other words, even if the use of technical analysis is the underlying stock should also be used, namely: in the underlying stock trading signals simultaneously issued warrants for the sale of operations, rather than direct use of technical analysis of the warrants. In fact, foreign analysts are also warrants to do so.
However, for Baosteel JTB1, because it was not really covered warrants, its trading mechanism can not guarantee to maintain a close with the G Baosteel consistency, it is now basically can be used as a stand-alone investment products for analysis. In the absence of introduction of the new situation warrants, it is still likely to continue to maintain its scarcity premium, so the technical analysis of G Baosteel contrary, inappropriate. In short, Baosteel Warrants currently still relatively far away from maturity, investors may want to use technical indicators to determine its short-term market supply and demand and the trend, but once the real available covered warrants, investors should thoroughly change the analysis methods.
