Charts in brief: 25 May 10.

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.

STI drops 2.7% to 2,650.61 at closing
Tuesday, 25 May 2010

© 2010 - The Edge Singapore

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.

Charts in brief: 24 May 2010.

STI gains 0.8% to 2,723.87 at closing
Monday, 24 May 2010

© 2010 - The Edge Singapore

FSL Trust: There is confirmation of the reversal signal. Price closed higher at 45.5c. There is a chance that the counter might move to test 50c but before that, expect resistance at 47.5c and 48.5c. MACD is closing the distance with the signal line.  MFI has emerged from the oversold region after forming a higher low. A rebound is underway.

SPH: A white candle formed but it's not a morning star set up. Volume was not impressive either.  It was a weak rebound. It remains to be seen if volume will expand meaningfully if price continues to move up. Initial resistance at $3.82 followed by $3.91.

Golden Agriculture: A bearish day as all the gains of the previous session was wiped out today. OBV continues to decline which indicates continuing distribution. Volume continues to decline as the price pulls back. As the downtrend is intact, I would wait for clearer signs of bottoming before adding to long positions.

LMIR: Reversal signal failed. Very bearish. OBV continues to decline, indicating continuing distribution. MACD continues to increase its distance from the signal line, pulling away downwards. This counter is still trying to find a bottom.