Blue Chip Bargain Hunting

August 31, 2010 § Leave a comment

STI 31st August 2010

Late bout of bargain hunting practically saw the STI recovered from a 30 pt drop.

This is an encouraging sign for several reasons :

1. Late buying is usually a sign of investors confidence.

2. Volume is high.

3. Intraday low shows that support around 2025 is extremely strong. Past few sessions have failed to break it and it rebounded strongly.

4. GMMA is merging, and has not crossover. Short term averages are likely to turn up soon.

5. Stochastic is just mid way through and has yet to reach overbought region.

6. Momentum is also starting to turn up.

7. 50 day moving average lends further weight at 2025.

Chances are high that the index should continue to go up. Immediate resistance around 2963.

Those who accumulated last week can look to add to positions (remember to cater for risk and not overbuy).

On an individual stock level, some of the following stocks as seen its technicals improving :

1. Singtel

  • Breached strong resistance at $3.07
  • Stochastics not yet overbought
  • High volume
  • Recovered and trading above long term moving averages (50ma, 100ma, 200ma).

2.Cosco

  • High volume
  • Recovered support of $1.55
  • 50 day moving average turning up, and may seperate from 100 day moving average.
  • Uptrend line still intact
  • Stochastic turning up

3. Wilmar

  • Extremely high volume
  • Stochastic turning up from low end
  • Still in a downtrend, but 50 day moving average may turnup and cut the 100 day moving average soon
  • However, strong resistance at $6.4
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SingPost Daily Share Buy Back

August 29, 2010 § Leave a comment

http://www.singpost.com.sg/singpost_03investor_fNews.htm

SingPost has been quietly buying back its own shares from the open market since 12th Aug as treasury shares.

As of 27th August, it has accumulated a total of 7 million shares.

This could be a sign that something positive is yet to surface for this counter.

YangZiJiang on the Verge of a Breakout

August 22, 2010 § Leave a comment

YangZiJiang 20th August 2010

YangZiJiang has formed an ascending triangle pattern and ended on higher volume in the last session.

Uptrend is showing good strength and stochastic has yet to hit overbought region.

A relatively low risk entry with a high possibility of a breakout.

Support at $.1.45 and $1.41

OSIM Uptrend Intact

August 22, 2010 § Leave a comment

OSIM 20th August 2010

Price is hovering along its uptrend line.

Strong support can be found at 90 cents.

100 days moving average is just slightly below 90 cents, lending further weight to the support.

GMMA has however made a crossover. Stochastic is still in oversold region and has yet to turn up.

The good news is that the sell down in recent week has seen volume dwindling.

Sellers are drying up and a breakdown below 90 cents is highly unlikely.

Conservative traders can look to enter when stochastic turns up from oversold region.

Stop loss at 89 cents.

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