Raffles Education: Downtrend in force.

Raffles Education's downtrend continues. Distressed shareholders must be wondering if there is any end in sight. 29.5c is where we find the merged 20d and 50d MAs. This level was previously a support and is now resistance. Volume expanded as price drew to a close at 27.5c in the last session.

The MACD is declining in negative territory.  Momentum is clearly negative. After enjoying a brief period of accumulation from 26 July, distribution activity which started on 11 August has wiped out all gains in the OBV by the end of the last session.  Traders who were nimble enough to offload at 31c before the distribution activity took hold would have made a gain assuming they bought in at 29.5c.

Raffles Education's downtrend is in force and it would take a brave punter to try and make money trading this counter. Selling on rebounds is the strategy to adopt here, at least until there are clearer longer term reversal signals.

Related post:
Charts in brief: 16 Jul 10 (Part 3).

Genting SP: Twin spinning tops.

No matter how bullish analysts might still be about Genting SP, I believe that taking some profit off the table for anyone who is still vested is the prudent thing to do.  Yes, the MFI is still uptrending and OBV shows accumulation.  However, take note that the RSI is in overbought territory and has formed a lower high.  This suggests that the buying momentum is weakening and being overbought, it has to be corrected in time.

The MACD is still rising above the signal line in positive territory but notice how the distance between the two lines is narrowing. Another cautionary signal could be found in the candlesticks formed.  We have twin spinning tops formed in the last two sessions, a sign of indecision and doubly so.  Indecision in an uptrend?  Doesn't sound positive, does it?  Also, notice the huge decline in volume as the counter tries to hang on to its gains.

Genting SP's price seems to have support at $1.50 but gaps are more often than not filled.  So, we could see price touching $1.46 in case of weakness.  From the chart, it is clear that the top of the base formation could be found at $1.30 and this is also where the rising 50dMA would approximate soon.  In case of a dramatic decline, expect strong support at $1.30, therefore.