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Charts in brief: 25 May 10.

Tuesday, May 25, 2010

On 20 May 2010, I said that "to keep a semblance of an uptrend, the next low formed by the STI should be higher than 2,660 points." Today,the STI closed below 2,660. The uptrend is broken and we have a bloodbath.

Golden Agriculture: CPO closed 2.17% lower today at RM2,436.  The downtrend is reinforced.  Golden Agriculture's share price has weakened as well to close at 48c. Further weakness would test support at 46c, 45.5c and 42c.  This counter is still looking for its bottom.  Not a good time to go long here.

Courage Marine: BDI is up 2.575% at 3,943 and yet Courage Marine's share price weakened somewhat today, touching a low of 17.5c before closing at 18c.  17.5c has significance as the base price of the double bottom formed over the last few months.  Was what we saw today the base of the third bottom? A triple bottom in the making? Volume has been reducing as the price pulled back. BDI has been rising but Courage Marine's share price has been in decline. The signs are too tempting and I bought some shares at 18c. Just a hedge.

SPH: On 23 May, I mentioned "there would probably be a lower entry price to go long on this counter. I would wait and see." Closing below its 200dMA signals more downside to come.

Let us see if the support at $3.62 would hold up if tested.  This is where we find the rising 50wMA.

Saizen REIT: The news that North Korea is getting ready for war with South Korea seems to have spooked some investors.  One person sold more than 2.3m shares at 4.01pm at 15.5c a share.  This caused the 15.5c buy queue to be wiped out. Saizen REIT has not closed at 15.5c since January this year. However, a look at the weekly chart confirms that the longer term uptrend is still intact as price is still being supported by a rising 50wMA. I would wait and see.

Related post:
STI: Falling through the 200dMA.
Charts in brief: 24 May 2010.


Anonymous said...

bloodbath? come on man, stop exaggerating. I have seen worse.

AK71 said...

Hi Anonymous,

I am sure that many of us, if not all, have seen worse. My description was based on a breaking event which was the STI forming a lower low and a sea of red which was on my screen. I am glad you see it as an exaggeration. Always good to stay positive.

Could you leave your name or initials after your comments in future? Thanks.

Ranger said...

Hi anonymous,

You've seen worse? C'mon man, stop exaggerating. I've seen worse.

AK71 said...

Hi Ranger,

Et tu? ;) In my 15 years as an investor, I remember one year, the STI bottomed at 800 points. Keppel Corporation was at $1 a share. That was truly scary.

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