SPH: Another white candle.

My favourite blue chip is in top form and has been advancing for several days in a row.  Today, another white candle was formed as price closed at the high of $4.13.  Could we see a retest of $4.20?

Some analysts are saying that there could be a bumper dividend and that is driving accumulation.  Some people are saying that it is just quarterly window dressing and that it is just a blip.  Which camp is right?  I don't know but volume has been pretty high in the last two sessions as MACD formed a bullish crossover and rose in positive territory. The MFI has formed an almost straight line up and seems set to cross into overbought territory in the next session. RSI has already peeked into overbought territory.  OBV, although rising, does not show very strong accumulation activity.

What would I do? If SPH does retest $4.20, I expect that to be a strong resistance as many who missed selling then would sell now.  So, I would sell some at $4.20 and buy back if price retraces to the 20dMA.  Good luck to fellow shareholders.

Related post:
SPH: Doji at $4.00.

SPH +0.7%; More upside as bumper dividend eyed: UOB
Wednesday, 01 September 2010

© 2010 - The Edge Singapore

Golden Agriculture: Breaking out.

Yesterday, I mentioned Golden Agriculture's "next resistance is at 57c. This is where we find the declining 20dMA and the downtrend line." Today, it broke this resistance level in a most convincing manner as volume expanded significantly.  Price touched a high of 58.5c before closing at 58c.

58.5c is a many times tested resistance level and one wonders if this could be taken out as we eye 62c, the longer term resistance which I said could possibly be tested.

Technically, chances are good with both the MFI and RSI rising strongly. Being at around 50%, they are nowhere near overbought and they could go much higher.  The OBV shows accumulation.  The MACD seems ready for a bullish crossover.  Most importantly, volume is the fuel that drives rallies and this has been increasing nicely.  Let us see if this continues to be the case.

Related post:
Golden Agriculture: Moving higher?