F&N: Rocketing upwards.

This counter rocketed upwards as it reported a 55% increase in nett profit.  This is on the back of expanded volume.  Very impressive seeing as it was a pre holiday trading session.  Resistance at $3.92 was sliced through like a hot knife through butter.  However, the dead cross at the confluence of the 20dMA and 50dMA was too strong a resistance to break today as price action touched $4.08 and retreated to close at $4.02, just under the declining 20dMA.  This is a fish that swam away from me. No matter. There are many other fish in the ocean.


For those of you who really like the F&N fish and still want to buy some, pay attention to the 100dMA.  This seems to be the resistance turned support at $3.93.  We need confirmation in the next trading session.  This would be a safer level to buy some F&N shares if the support is confirmed instead of chasing.
 
The MACD is closing in on the signal line and a bullish crossover seems most probable.  MFI has risen above the oversold territory and has plenty of room before it reaches 50% which may act as resistance.  Of course, there is plenty of room before it is overbought.
 
Using candlesticks, I've intuitively identified three higher levels of resistance if the counter moves higher.  Good luck to interested parties and congratulations to parties brave enough to buy earlier this week.

V2EDNMFSHXH3

F&N: An amazing reversal

A star performer today is undoubtedly F&N as it continues its amazing reversal to close at $3.92, resisted by the 100dMA.  Volume is lesser than yesterday's but is still respectable given the pre holiday mood.  MFI continues to move up, confirming that some buying momentum is back.  MACD has turned up and is closing on the signal line, seemingly poised for a bullish crossover.  That the MACD is below zero means that the upward momentum in the counter is not back in force.  If the buying momentum follows through tomorrow to break the 100dMA resistance, the next resistance will be provided by the confluence between the 50dMA and the 20dMA, where, incidentally, a dead cross formed today and is likely to be a strong resistance.  Any further move up in price would have to be accompanied by increased volume to break it.

We will need confirmation tomorrow to see if the rising 200dMA at $3.83 is now resistance turned support.  If it is, that might be a good price to buy some F&N shares.  However, one must not be too optimistic as one up day does not make an uptrend and this counter might consolidate in a wide trading band yet.

V2EDNMFSHXH3

3 bue chips and 1 REIT

Saizen REIT: Still trading sideways.  MFI has moved into oversold territory.  The quarterly report will be released tomorrow in the morning before trading starts.  Volume is very thin today as if everyone is waiting for the report before deciding on what to do next.

F&N:  Uptick in the MFI pushed the index out of oversold territory as the terribly oversold counter seems to have attracted some buyers.  Price action formed an inverted black hammer on respectable volume and has moved away from the lower limits of the Bollinger bands.  If this continues, the correction is over and we might see some consolidation.  Initial resistance is provided by a rising 200dMA at $3.83 followed by the 100dMA at $3.92.

Keppel Corp: MFI continues to rise and seems determined to form a higher high.  This is a positive as it signals the return of some buying momentum.  That the black candle day is accompanied by reduced volume today is also a positive.  As of now, the counter's uptrend is stil intact.

SPH:  A low volume day as price almost formed a white hammer.  MFI has turned up.  Let us see if the symmetrical triangle I talked about yesterday will deliver good news in time.

V2EDNMFSHXH3

Are the blue chips singing the Blues?

No morning star formation for F&N.  In fact, price opened lower at the 200dMA, $3.80, made a half hearted attempt to rise only to close lower at $3.76.  Breaking the 200dMA is very bearish since it signals the end of a longer term uptrend.  The consolation?  The volume is much lower and MFI has entered the oversold region.  Is there no respite?  It certainly looks like there would be more downside.  Looking at the weekly chart, we see the 50wMA rising and looks set to forming a golden cross with the 100wMA at $3.60.  I might be tempted to buy some at that level then.

Keppel Corp shows relative strength compared to F&N even as the morning star formation failed to materialise.  Price did open and close higher compared to the previous session, almost forming a black hammer in the process.  Closing at $8.24, however, is under the 100dMA which is at $8.27.  This confirms that the 100dMA is now the immediate resistance.  20dMA and 50dMA have both completed their downward turns and seem determined to decline.  Dead crosses up ahead?  A look at the weekly chart shows that the price has been hugging the 20wMA for support in the past three months.  The MACD continues to decline and the jury is out on whether the 20wMA will continue to be a support.  If the 20wMA breaks, there is some way to fall.

No morning star either for SPH but it remains the strongest of the three blue chips here.  Price closed lower at $3.68 and formed a black hammer but not before touching a low of $3.65 to test the 100dMA.  So, is SPH a safe haven?  Nothing is safe if the bear comes back.  Looking at the candlestick supports and resistance, if SPH breaks its trendline support, it could sink rapidly to $3.40 which coincides with the rising 200dMA.  If that happens, I'm bringing out my warchest.

Related posts:
A tale of two blue chips: F&N and Keppel Corp
Is SPH the bluest of them all?

A tale of two blue chips: F&N and Keppel Corp

A late night chat with La Papillion in his cbox led to a comparison between F&N and Keppel Corp.  I decided to do a TA on both counters to see which one has relative strength.

F&N's close at $3.83 is supported by the rising 200dMA and the trendline support which I have drawn in orange color.  Further decline in price would mean that the uptrend is over and it's a double whammy for F&N as the 200dMA which is an indication of long term trend would be violated at the same time. A quick look at the weekly chart indicates the next support to be provided by the 100wMA which is at $3.65.

Using two sets of Fibo lines, we see that the $4.00 mark has two Fibo lines which are very close to each other which indicate that it is an important support.  This is further confirmed when we realise that it is a many times tested candlestick resistance turned support as well.  Breaking this critical support on 2 Feb was a very bearish sign.

The MFI continues to decline and has formed a new low.  It is nearing the oversold region.  That the volume has been diminishing as the price weakened in the last two weeks is a positive for the bulls.  There is a chance we might have a candlestick formation known as the morning star if the price opens higher than $3.89 in the next session and closes higher.  For those who have bought some in the last session or two, good luck.

Keppel Corp's chart, relative to F&N's, shows some strength.  Overall, Keppel Corp's price is being held down by a gently rising 200wMA. Everytime its price approaches the 200wMA, it would pull back. The 200wMA is currently at $8.87.

The buying momentum has not weakened as much as F&N's as could be seen in the MFI.  The index has been forming higher lows and recently formed a lower high.  However, breaking the 100dMA support on high volume to form a doji at $8.18 isn't exactly comforting. 

Of course, it is possible that the price action is setting up for a morning star formation as well.  This will transpire if next session sees the price opening above $8.20 and closing higher.  In the next session, we will also have confirmation if the 100dMA is now a support turned resistance at $8.26 thereabouts. 

I have drawn the trendline support in orange color and just like F&N, Keppel Corp is resting on the trendline and if price weakens further in the next session, the fast rising 200dMA is at $7.75 and should provide support. 

Both blue chips, in my opinion, have a strong thrill factor at the moment. To those who are vested, sit tight for the ride and good luck.

Related post:
Revisiting Keppel Corporation.