Executive Summary

YZJ Shipbuilding is approaching the critical $3 resistance level, a key psychological and technical barrier that could signal a major breakout for this prominent shipbuilder. Supported by strong bullish momentum and upward-trending moving averages, the stock shows promising signs of a continued uptrend.

My 1GT (Pro) Indicator has recently flashed a bullish signal near $2.80, further reinforcing the positive outlook. With a potential upside target of $3.50 and solid support at $2.80, traders are closely watching this pivotal moment.

Could this be the turning point to propel YZJ Shipbuilding to new heights? Dive into the full analysis to uncover the strategies to capitalize on this opportunity.

YZJ Shipbuilding, a prominent shipbuilder, has recently shown encouraging signs of bullish momentum.

After a period of consolidation below the $3.00 level, the stock has started to display strength as it inches closer to this critical resistance.

Looking at the trend, the price is well-supported by the 20-day moving average (green line), which is trending upwards, indicating a positive short-term trend.

The 100-day moving average (red line) and the 200-day moving average (blue line) are also pointing higher, confirming a long-term uptrend.

My 1GT (Pro) Indicator has generated a recent bullish signal (green) near the $2.80 support, adding further weight to the positive outlook. There are no bearish signals triggered as of now too which can point towards more upside.

The $3.00 level, which is both a psychological and technical resistance, is the next key level to watch.

A firm break above this level with good volume could pave the way toward the $3.50 resistance, representing a potential upside of approximately 15%.

On the downside, $2.80 remains the immediate support level, and any break below it could signal some weakness, with the next key support around $2.60.

However, traders should remain cautious and adhere to proper risk management.

Placing a stop-loss below $2.80 could be prudent to protect against downside risk while positioning for a potential breakout above 3.00.

For entries, an aggressive approach would be to wait for a confirmed breakout above $3.00 with strong volume, indicating that the resistance has been cleared and the uptrend is resuming.

Alternatively, a conservative approach would involve accumulating on dips near $2.80 – $2.90, close to the support, but this requires a tighter stop-loss below $2.80 to manage risk effectively.

With bullish signals from my 1GT (Pro) Indicator still playing out, this stock presents a potential opportunity for traders to position themselves ahead of a possible breakout.

So, how does one take a position in YZJ Shipbldg SGD whereby you are able to reap more potential return to ride the uptrend further?

Those keen to ride on the short-term upward momentum in YZJ Shipbldg SGD shares can consider using warrants to leverage on that move.

The reason for that is that the warrants can potentially generate magnified returns for a given move in the underlying.

But how will the warrants perform based on this view?

One predictive tool to use to predict the warrant performance before entering into it is, the Warrant Calculator tool.

To use it, one needs to enter the specific warrant of interest.

In this case, there is only one structured call warrant YangzijiMBeCW250417 (SMVW) and one put warrant YangzijiMBePW250627 (WCTW) after selecting the underlying drop down of “Yangzijiang”.

Those who are looking to enter into a long or bullish position when Yangzijiang breaks above $3.00, can simulate the price of the call warrant SMVW using this tool.

Update the “Underlying Price Entry” to say, $3.05. and move the date to a later date e.g. later this week on 10 January 2025, and you would see a simulated warrant bid price at SGD 0.035.

This is the theoretical bid price of the warrant if Yangzijiang rose to $3.05 later this week and assuming all other pricing factors remain constant. (see screenshot above)

To simulate your returns if Yangzijiang went toward $3.50 from here, move “Underlying Price Target” to $3.50, 14.8% higher from the entry price, and to a later date until you see the simulated potential returns matching a similar 14.8% return.

In this case, by the last trading day of this warrant on 10 April 2025, the warrant will only generate approximately 20% gains from the theoretical price of SGD 0.035 to SGD 0.042.

The maximum holding period for this warrant is therefore 3 months. (see screenshot below)

If Yangzijiang reached $3.50 earlier than that, the estimated returns on the warrant will be higher, due to lower time decay over a shorter period.

For example, if Yangzijiang touched $3.50 in a month’s time on 10 February, the call warrant will gain 54.3% to SGD 0.054, 3.7 times more than Yangzijiang’s 14.8% share price gain (see screenshot below)

Those who are bearish on Yangzijiang shares and think they may pull back from here or from a higher stock level such as $3.50, can use the Calculator with the put warrant YangzijiMBePW250627 (WCTW), by changing the “Underlying Target Price” to $2.80, for example, you can observe the price increase in the put warrant. 

The sharing on how one can take a position using warrants has been contributed by Macquarie warrants Singapore who is the issuer of these warrants listed on SGX.

About the Author - Joey Choy

Joey is Singapore’s renowned mentor on how to make an income by trading the stock market, an author and one of the most-watched, quoted and followed stock trading trainers in Singapore. Over the years, he has conducted numerous full house seminars, enriching thousands to trade more profitably. 

Joey’s come back story from a S$740k debt has been featured in the Business Times and inspired thousands in Singapore. In less than 3 years, he is highly regarded as one of the Top Tier Remisiers (Stock Brokers) and Traders, bagging numerous yearly awards like Top Trading Representative and Top CFD Achiever every year from 2014 to 2023 in Phillip Securities.

More about Joey here

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Look forward to see you on the inside!

- Joey

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