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 weak showing

No morning star formation for Golden Agriculture.  Price closed right smack on the 50c support level.  Even though volume expanded to become the highest in the last three sessions, the picture of a low volume pullback is still valid.  That the price touched a low of 49c before rebounding suggests that the 50c support has become porous.  100dMA is at 48.5c and should provide the next level of support.  If this breaks, there is some way to fall.  Of course, if the 50c support level continues to hold up, chances of some upside action will increase.

The low volume pullback picture for Healthway Medical is intact.  Price action tested the 14c support level today before closing at 14.5c.  If 14c breaks, the next level of support should be where the 50dMA is and that's at 13c.  MFI has turned down and looks set to test its trendline support.  Let's see if it rebounds to form a higher low.  If it does, it would be a positive.  Otherwise, it's back to being lacklustre.  MACD continues to descend and is nearing zero.  If it goes below zero, it would signal the end of the upward momentum.

Saizen REIT remains rather illiquid and closed with a gravestone doji at 16c.  The daily MAs are flattening out and indicate a period of low volatility as prices have been trading sideways.  Looking at the weekly chart shows that the price is still trending upwards.  This is the longer term picture.  In terms of fundamentals, Saizen REIT is an attractive longer term investment for anyone who wants to buy residential real estate in Japan at a huge discount and it is comforting to see the chart confirming that the trend over the longer term is still up.