Charts in brief: 16 Jul 10 (Part 2).

FSL Trust: 42c seems like a difficult resistance to overcome at this point in time. This is gap resistance and resistance provided by the declining 50dMA at the same time. RSI has also moved higher up into the overbought region while we see a sell signal on the MACD histogram.  Volume has been reducing as price moved higher. Without an expansion in volume as price moves higher, it is unlikely that 42c could be taken out in the next session. Unless there is some positive newsflow soon, chances of a pullback in price are higher. With all the higher lows formed in the MFI and RSI, the momentum oscillators are clearly uptrending and I expect any pullback to find initial support at 40c.

Genting SP: First touched on 29 Jun, $1.20 has proven to be a tough nut to crack. Volume has been reducing since that day as price stayed above the 20dMA. If we look purely at the 20dMA, the short term uptrend seems to be intact. However, if we look at the MACD, we see a bearish crossover with the signal line on 2 Jul and since then the MACD has been declining beneath the signal line. MFI, RSI and OBV have all flatlined.  There is clearly no trend where these indicators are concerned.  Pay attention to the 20dMA which should be at $1.17 in the next session or so.  If this is breached, price could move lower rapidly.

Healthway Medical: Since price touched a high of 21c on 16 Jun, the MFI has been in decline.  This suggests a weakening demand. However, we do not see a similar decline in the OBV.  In fact, the OBV has gone up which suggests that there is more accumulation than distribution. There is some underlying support and even though demand has weakened, there is little selling pressure.  Immediate support is at 18.5c.

K-REIT: A very nice up day with a very nice white candle as volume more than doubled from the previous session.  Price closed at $1.22, the high of 11 and 12 Jan.  if momentum keeps up and price action goes parabolic, I won't be surprised if we see $1.34 (161.8% Fibo line). At this point in time, it is still a fantasy.

Related posts:
FSL Trust: The skies are clearing up.

Charts in brief: 16 Jul 10 (Part 1).

Golden Agriculture: Broke resistance at 55c and powered higher.  Volume almost quadrupled! If the momentum keeps up on Monday, we could see price attempt to go higher.  Beyond 57c, the next resistance is at 58.5c.  Support at 55c.

Palm stocks rally; Demand to rise: Morgan Stanley
Friday, 16 July 2010

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AIMS AMP Capital Ind. REIT: It is obvious that this counter is trapped in a range between 21.5c and 22c. I remember saying that if the MFI declines and price remains at 21.5c or higher, it is a good sign.  Good because it shows that there is a lack of sellers even as demand declines. Well, the MFI is now in oversold territory and price has stayed at 21.5c to 22c so far.  Of course, the MFI could stay oversold for a while more but if we look at the shorter term 20dMA and the longer term 100dMA, they have one thing in common.  They are both rising, if gently. When there are no more sellers at this level, we might see price rise to the next bracket.

CapitaMalls Asia: Looking somewhat precarious here. Prices are testing the support provided by the third fan line.  The uptrend has weakened from the initial fan line and it now looks exhausted. OBV shows clear distribution since price peaked on 23 Jun. From Monday to Thursday, volume expanded as price dropped.  Today, volume is lower and this is probably in response to the slightly oversold condition as suggested by the MFI.  Immediate support at $2.04 and immediate resistance at $2.10.  Closing below $2.04 in the next session would break the uptrend support and the price is likely to move lower from there.

Courage Marine:  The BDI's decline seems to be slowing but at 1,700, it is pretty darn low. From the RSI, it seems that the decline in price has some momentum.  However, the MFI has dipped into oversold territory and this might put a lid on selling although demand is obviously weak.  The OBV does not show any sign of strong selling. I did suggest that this counter's resilience stems from the company having a debt free balance sheet. In difficult times, companies with strong balance sheets are more likely to survive. Immediate support at 18.5c.  Strong resistance at 19.5c, which is where we find the confluence of the 20d and 200d MAs.

Related post:
Golden Agriculture: CPO price spiked 2.44%.