Charts in brief: 16 Apr 10.

STI retreated today on lower volume to close at 3,007.19.  The market is digesting its gains and this is not something I would worry about for now.

STI down 0.5%, struggling to hold above 3,000
Friday, 16 April 2010

© 2010 - The Edge Singapore

China Hongxing: Coincidentally, DMG & Partners issued a buy call at 2.50pm, approximately an hour after my post about how the counter might present a trading opportunity this afternoon.  Their target price is 22c.  Just like their target price of 30c for Healthway Medical, it is a 12 months target.  So, I would stick to my earlier chart reading, recognising that if 15.5c is cleared, the next resistance levels are at 17.5c and 18.5c.  For the report by DMG & Partners, please see: 16 Apr 10 China Hongxing: Buy.

 

Healthway Medical: Technically, the weakness is obvious as the support at 16c has been tested four out of five sessions this week.  This support is provided by the flat 50dMA.  If 16c goes, the rising 100dMA should provide the next level of support at 15c.  OBV is flat and this should be viewed positively as it suggests that there is no heavy selling down of the stock.  So, downward pressure is somewhat limited.

Golden Agriculture: Closed down 1c at 59.5c on heavier volume. MACD has made contact with the signal line and is poised for a bearish crossover.  Things are looking somewhat bleak but let's see if the rising 20dMA will be able to push up the price next week.  The higher high on the MFI does suggest a return of positive buying momentum. This would confirm that the counter is doing a correction using time.  If the 20dMA fails to hold up as the support next week, the rising 50dMA is at 56.5c and the rising 100dMA is at 54.5c.  These two longer term MAs would provide stronger supports then.

CapitaMalls Asia: Price has broken down from the sideways movement. I see strong support at $2.20 and that's where I would buy more. Upside eventual target remains at $2.55.

Courage Marine: Demolished the gap resistance at 23.5c in early morning trading to touch a high of 24c.  The gap resistance soon reasserted itself and the counter ended the session at 23.5c.  The white candle day took place on the back of much increased volume.  OBV turned up sharply, suggesting heavy accumulation. MFI continues pushing higher into overbought territory but if the bullishness continues, the index could stay overbought for much longer.

SPH: Price pushed higher to close at $4.07 but volume has reduced significantly. MFI has pushed higher into overbought territory. OBV continues its upward trajectory, suggesting continuing accumulation. Upside target is still $4.20 but it remains to be seen if this could be achieved.  Volume should expand as price pushes higher for the upmove to be sustainable.

Saizen REIT:  Extreme low volume day.  Volume has not been so low in more than two weeks.  There has been some profit taking going on but price has stayed firmly above the 20dMA.  MFI shows a decline in buying momentum and OBV shows that some distribution has been taking place.   Despite all this, price has stayed at 17c and this shows strong support.  If 17c gives way, we should find a stronger support at 16.5c, provided by the rising 50dMA.  It is my personal believe that 16.5c is the new floor for Saizen REIT if it is ever tested.
Please see: Saizen REIT: A symmetrical triangle?

Related post:
Charts in brief: 15 April 10.
China Hongxing: Prime for a breakout?

China Hongxing: Prime for a breakout?

I first blogged about China Hongxing on 6 March 2010.  In that post, I said: "Analysts are downgrading the prospects of the company en masse despite the company reporting a net cash position of 22c per share. The share price closed at 14c on 5 March. CIMB-GK and Kim Eng Securities even ceased coverage of the company altogether."  Please see: China Hongxing: Another S-chip bites the dust.

On 14 March 2010, I blogged about the company again.  In that post, I said: "The decline in China Hongxing's price seems to have halted and rebounded as it was supported by the channel support at 14c. The decline in price has been accompanied by a decline in trading volume. The Stochastics has just turned up from the oversold region. These indicators suggest that downward pressure is limited but it might be a temporary respite." Please see: China Hongxing: Downside target.

As it turns out, the limited downward pressure allowed China Hongxing to bottom at 14c. Its price made a bullish move up to touch a high of 16.5c before closing at 16c on 7 April on the back of very high volume.  The 20dMA has been rising gently and the counter has been trading above it since 7 April.  Immediate support is now at 15c, provided by the 20dMA.  Immediate resistance is at 15.5c, provided by the descending 50dMA.

Since 8 April, volume has been reducing as price was capped by the declining 50dMA.  Yesterday, volume expanded as price broke resistance to touch 16c but ultimately closed at 15.5c.  The MACD has been rising and seems poised to cross zero to herald the return of positive momentum.  Strictly speaking, I do not see a buy signal yet. However, technically, this counter might be prime for a breakout.  A breakout would see the 100d and 200d MAs acting as resistance at 17.5c and 18.5c respectively.  Might the current setup be good for a trade?