Hi-P Chance for a Breakout

September 7, 2010 § Leave a comment

Hi-P 7th September 2010

Another low risk play, similar to YangZiJiang before its breakout.

1. Ascending triangle with very narrow trading range. Formed by resistance of 86 cents and uptrend line

2. Stochastic yet to hit overbought.

3. Volume low, sign of impending surge in volume

4. Company share buy back for past weeks (similar to Informatics and SingPost)

Keep stop slightly at 83.5 cents

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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

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.

Scratch the Greenback

July 5, 2010 § Leave a comment

USD 2nd July 2010

If there is anything positive about the market gloom, it is the US Dollar.

The correction in June has more or less come to an end.

Chart pattern shows the formation of an equilateral triangle. A breakout on the up or down side is possible.

GMMA shows that the red and green moving averages are converging and about to cross over.

However, Momentum is turning up from a low, adding to the possibility that the price will rebound from the base of the uptrend line.

Further inspection of the Stochastics shows a bullish divergence :

1. This is discerned from the small trend line formed in the oversold region.

2. In contrast, the us dollar index is making a lower low in the same period.

This divergence indicates that the fall in the index is just a false break. Any rebound that follows is going to be a strong one.

This is the same divergence that hints at the recovery in November last year (left edge of the chart).

This time, the divergence is much clearer.

STI Support to Be Broken?

July 5, 2010 § Leave a comment

Straits Times Index 5th July 2010

STI proved resilient at 2835 for the past few sessions.

Four sessions ago, it went as low as 2783 during intraday trade before recovering all its losses to close at 2835 support level.

This level also coincides with the merged 50 and 100 day moving average, further adding to support.

However, taking a step back, looking at the overall chart pattern, the downtrend line formed by the 2 peaks and the support line has formed a penant.

This has bearish implications as lower highs are being made.

The trading range is narrowing and a break out is bound to occur soon.

GMMA shows that the green and red groups of moving averages are merging.

Momentum is still turning down, implying the fall of the index is far from over, if not, only the beginning.

Stochastics is still mid way down, suggesting that a major sell off has yet to occur.

From a technical perspective, bears are favourite to win this bout.