FSL Trust: Verona I.

Initially, the news that FSL Trust secured the release of Verona I was met with much bullishness and price was pushed to a high of 40.5c on the back of heavy volume.  By the end of the day, it closed where it started the day at 38c, forming an inverted cross.  This suggests that there is still much bearish sentiment here.  Once Nika I is released as well, we might see the unit price of FSL Trust bottoming in earnest.

MFI has risen and is testing 50% next.  This suggests some positive buying momentum.  The OBV has turned up quite vigorously which suggests some accumulation activity. The downtrend is still quite obvious and until its unit price moves above the declining 20dMA, the worst is not over for FSL Trust.

Major resistance at 42c, as provided by the declining 20dMA.  Immediate support is at 37.5c.  The waters are still murky for FSL Trust but it might be clearing up.

First Ship Lease Trust secures release of Verona I
Friday, 18 June 2010

© 2010 - The Edge Singapore

Charts in brief: 17 Jun 2010.

Healthway Medical: Second black candle day in a row and we see a sell signal in the MACD histogram.  MFI is turning down in overbought territory. An initial correction to 18c where we find the 38.2% Fibo line is not difficult to imagine.  Stronger support could be found in a band between 16.5c to 17c.

LMIR: Volume expanded nicely as price closed at 48c, avoiding another doji.  We will now need confirmation that 47.5c is resistance turned support. Negative divergence between price and volume although still visible has weakened somewhat with today's higher volume. In case 47.5c fails to hold as support, immediate support is at 47c followed by 46c.

Golden Agriculture:  55c is proving to be a tough resistance to overcome. Both the 50d and 100d MAs are providing resistance at that price. Today's black spinning top could serve as a reversal signal.  Will need confirmation. The negative divergence between price and volume is obvious. I would stay cautious and not go long here. Immediate support in case of further weakness is at 51.5c, as provided by the 200dMA.

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Charts in brief: 16 Jun 2010.

SPH: A pleasant surprise.

Sometimes, the unexpected happens in life and we can only hope that the unexpected happens to be a pleasant surprise and not a nasty one. After yesterday's doji on the back of higher volume, the white candle today on reduced volume was definitely unexpected and a pleasant surprise.  Could this continue tomorrow?  Your guess is as good as mine.

I see resistance at $3.82 next.  This is provided by the 100dMA. If this gives way, $3.88 is next, as provided by the 50dMA.  It is interesting to note that we might have seen the formation of a mini double bottom for SPH.  Using $3.68 as the trough and $3.79 as the neckline does give us $3.88 as a target.  Coincidence? Maybe.

Are we seeing the beginnings of an uptrend?  The MACD is rising in negative territory.  So, this could very well turn out to be a rebound in a downtrend and nothing more.  The negative divergence between price and volume is, this time, supported by a negative divergence between price and MFI.  This suggests that price has been rising on rather weak technicals in the last few sessions.

I would not buy more SPH at this point in time.  I would, in fact, sell some at $3.82 as a hedge and sell more at $3.88 if that is hit. I would keep an eye on the negative divergence to see if it gets corrected.  If it does, and if the MACD rises above zero into positive territory, more upside might be on the cards and I would hold my remaining shares for the ride up.  Good luck to fellow shareholders.

Charts in brief: 16 Jun 2010.

Golden Agriculture: Price rose and met resistance at 55c as expected. The falling 50dMA and 100dMA both approximate 55c which makes this a strong resistance.  If this could be taken out, we could likely see a target of 57.5c which is where we find the 138.2% Fibo line.  This is also a gap resistance.

AIMS AMP Capital Industrial REIT: The fourth gravestone doji in seven sessions.  21.5c is being tested vigorously as the immediate support. MACD has dipped into negative territory while the MFI and OBV have flattened.  The loss in buying momentum is obvious.

LMIR:  Second doji in a row as price closed at 47.5c, resisted by the flattening 50dMA. If this is taken out, resistance is provided by the falling 100d and 200d MAs. These are approaching 48c, which perhaps explain the dojis which reached a high of 48c.  The negative divergence between price and volume is obvious and suggests that LMIR is rising on weak technicals.

SPH: Volume expanded today and is the highest in seven sessions but all that could be managed at the end of the day was a doji with price closing at $3.75, suggesting weakness.  If price could rise further, it would find resistance at $3.82 as provided by the flat 100dMA.

Saizen REIT: I looked at the weekly chart just now. It seems that price is moving above the declining 100wMA.  This is good news.  There are of course two more days before the week ends.  So, let's see how it would end on Friday. I also like the up channel I see.

STI +1.4%; Take some profits by Friday, says DBS Vickers
Wednesday, 16 June 2010

© 2010 - The Edge Singapore

Related post:
Charts in brief: 14 Jun 2010.