Healthway Medical: Going down?

What is happening to Healthway Medical's share price, some might ask?  Since 5 July, price has only closed above the declining 20dMA twice. In the last five sessions, share price closed at 18.5c, the immediate support. The question on shareholders' minds is whether this support level will hold.  Will it? I don't know. What an answer, right?  Well, TA cannot tell us things like that. It's always a question of probability.  So, might it?  Let us examine some technical indicators.

The declining 20dMA suggests a short term downtrend.  Price closing at 18.5c for five sessions in a row is bearish but note the volume.  It has been thinning as price declined.  A low volume pull back?  Good for the bulls. The MFI has been forming higher lows and the OBV has declined ever so slightly.  Both indicators suggest that there is some underlying support. Again, good for the bulls.  So, 18.5c immediate support might hold.

What if 18.5c breaks?  Well, the longer term MAs are still rising.  The 50dMA should provide some support at 18c in case 18.5c cracks.  Unless there is a significant expansion in volume with any selling down, the 100dMA which is currently at 17c is unlikely to be tested as a support in the immediate future.

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

STI gains 0.4% to 2,979.38 at closing. Shares on the measure trade at 14.4 times estimated earnings, compared with about 17.5 times at the beginning of the year, according to Bloomberg data.
Tuesday, 27 July 2010

© 2010 - The Edge Singapore

Charts in brief: 26 Jul 10.

Genting SP: Volume expanded today as price closed at $1.24.  The MACD seems poised to do a bullish crossover with the signal line. Momentum is looking good and one wonders if $1.20 is now resistance turned support. Needs confirmation. However, if one looks at going above $1.20 as a breakout, this is a very "quiet" breakout with rather modest volume. Is it durable?

Genting S’pore up on Goldman upgrade: Goldman Sachs lifted its target price for Genting to $1.15 from $0.79, due to better-than-expected profits from its new casino resort in Singapore, Resort World Sentosa.
Monday, 26 July 2010

© 2010 - The Edge Singapore

CapitaMalls Asia:  Downtrend intact with today's black candle. OBV has formed a lower high, suggesting ongoing distribution activity. The descending 20dMA is preventing further gains. We could be seeing the beginnings of a descending triangle pattern if the downward pressure continues. Immediate resistance at $2.06 and immediate support at $2.02.

FSL Trust: Results were announced today with 2Q FY10 DPU at US0.95¢.  Volume rose today and there was much selling down of its units.  In spite of this, price remained unchanged at 42c.  This is a sign of strength as it means staying above the 50dMA.  MFI continues to rise, suggesting increased demand.  OBV is rising, suggesting continuing accumulation. There is some underlying support for this counter.  20dMA continues to rise and we might be in for a golden cross with the 50dMA soon.

First Ship Lease Trust to distribute US0.95¢ per unit for 2QFY10, 61% lower y-o-y
Monday, 26 July 2010

© 2010 - The Edge Singapore

SPH: The MFI has broken its uptrend support, suggesting a weakening demand. This coupled with the MACD set to do a bearish crossover with the signal line, a retracement to the 20dMA cannot be ruled out.  This is currently at $3.95 which is also an important candlestick resistance turned support. Volume has been reducing as price pulled back.  This is good news for bulls.  Support at $4.00 seems shaky and if this goes, I would keep an eye on $3.95 to see if it holds up as the next support.

STI drops 0.2% to 2,966.99 at closing
Monday, 26 July 2010

© 2010 - The Edge Singapore