NOL: Downtrend.

After hitting a high of $2.35 on 15 April, NOL was in a downtrend which was broken on 16 Jun on relatively high volume. Price hit a high of $2.13 on 21 Jun while forming an inverted white hammer, a reversal signal. This reversal signal was promptly confirmed in the next session. Forming a high of $2.13 on 21 Jun created a bearish picture because it was a lower high compared to the high of 13 May at $2.18.  This was a warning sign.

The MACD histogram turned red on 22 Jun while the RSI and OBV turned down the same day. Price has broken through various supports since then.  Price is currently resisted by the merged 20d and 100d MAs at $1.97.  With the 50dMA declining just above these merged MAs, it would be a difficult resistance to overcome without a buy up on massive volume.  Any upside could be resisted by the 50dMA just a few cents higher at $2.00. It seems that there are more sellers too if we notice how volume has increased as price declined since 21 Jun.  This is confirmed by the lower highs on the OBV which suggests that distribution activity has increased.

The MACD has formed a bearish crossover with the signal line and a retest of the flattening 200dMA which is currently at $1.83 seems likely.  As a support, the 200dMA was breached on three consecutive days in late May. So, this makes it somewhat unreliable and it is, therefore, a very important support to watch now.  If it manages to hold up, we would have a higher low formed.  A symmetrical triangle could then be in the works.  If the 200dMA support breaks, we could see the previous low of $1.75 tested.

Given the bearish technicals, I would sell at resistance at $1.97 if I have the chance to do so. If luck is on my side, I might even be able to sell at $2.00 on a possible whipsaw. Prices do not go down in a straight line and there could be little bumps up along the way.  So, a retest of the 100dMA as resistance again is possible. Of course, it might not be at $1.97 then. We want to sell at resistance and buy at supports.  Use the prevailing trend as a guide. Good luck.

Tea with AK71: iPhone with private videos.

I was surprised to see a Nuffnang ad in my blog just now offering a $10,000 reward for the return of a lost iPhone with private videos. Owner: Mr. Eddy Sun.  This guy must be in his early 30s going by his email address: eddysun77@gmail.com.  He lost his phone at Borders last night.

He has put up a blog just for the purpose of recovering his iPhone and it comes with a video clip of him making a personal appeal:



His blog: http://helpfindmyphone.blogspot.com/

I am posting this to help the poor guy spread the word since his Nuffnang ad comes and goes. I don't make any money this way but what the heck. Just trying to help.

If this is real, I wish him luck.  If this is a prank, it is in very bad taste and it's not even Earl Grey!

Charts in brief: 29 Jun 10.

CapitaMalls Asia: $2.14 looks like it is support turned resistance. We will need confirmation tomorrow. Price touched a low of $2.07 (the 138.2% Fibo line) before closing at $2.11, just 1c shy of the 50dMA at $2.12. The MACD has completed a bearish crossover with the signal line while the MFI continues to decline. There is a lack of demand at the moment and OBV suggests that distribution is ongoing.  It is also clear that as price fell from $2.22 five sessions ago, volume has expanded.  Immediate resistance is at $2.14 and immediate support is at $2.07.

Golden Agriculture: Formed an ugly black candle that is almost engulfing. Closing exactly on the 52c support after touching a low of 51.5c suggests that we might see continuing weakness, especially with momentum oscillators downtrending.  The MACD is about to form a bearish crossover. Next support remains at 50c.

Genting SP: It has been a while since I did a TA for this counter but Citibank says that this is one of their biggest SELL recommendations right now. That got me curious enough to look at the charts. For more than a week, this counter has been generating reversal signals: dojis and spinning tops. Today, volume expanded tremendously as price touched a high of $1.20 before closing at $1.15, forming a black candle.  MACD is about to form a bearish crossover. The RSI is at 87% and suggests that the rate of increase in its price has been too rapid.  MFI, on the other hand, is not in overbought territory yet and is still uptrending. OBV is flat which suggests that any selling is well absorbed. At the moment, the uptrend is still intact and immediate support is at $1.12 as suggested by candlesticks and the uptrend support line.

Citi says Genting Singapore is a “top sell”
Tuesday, 29 June 2010

© 2010 - The Edge Singapore

LMIR: Another lower high on the RSI as price formed a wickless black candle today, breaking the support at 47c to close at 46.5c. The lower Bollinger band is at 45.5c while I see a natural support at 45c. For anyone who wants to own some units of LMIR, buying smallish numbers at these prices could be good hedges.  I see 44.5c as a stronger support.

Related post:
Charts in brief: 28 Jun 10.

Charts in brief: 28 Jun 10.

CapitaMalls Asia: This is hanging on to support at $2.14 but barely so as price touched a low of $2.11 today.  The 20dMA which is providing support at $2.14 seems to be flattening. More significantly, I would like to draw attention to the fact that closing at $2.14 today is different from closing at $2.14 last Friday because the uptrend is now broken.  MFI continues its decline and the MACD looks set for a bearish crossover with the signal line.  I would not go long at $2.14 now.  The downside risk is too high.

Golden Agriculture: An inverted white hammer on lower volume. Momentum oscillators are flattish.  There is just no oomph in the upward movement in price today as it touched a high of  54c before closing at 53c.  Immediate support at 52c as provided by the 20dMA.

Healthway Medical: Its price is showing resilience as trading volume declined. 19c has been established as the immediate support. OBV is flattish and there is no sign of distribution. However, MFI and RSI are both hugging the borders of their respective overbought zones.  Might this exert some downward pressure on price or is this counter just doing a correction using time and would resume its uptrend once the 20dMA catches up?

SPH: This counter has been delivering pleasant surprises lately. Today, it closed at $3.88.  This effectively overcame the declining 50dMA as resistance. $3.88 was the eventual target of a mini double bottom I identified some time back.  I also divested some shares at this price not too long ago. The move up today was not accompanied by an expansion in volume.  So, I am doubtful about its strength.  However, the MFI and RSI are both rising and their uptrends are intact.  Momentum is good and if the price continues rising to hit certain Fibo lines, I might sell more of my remaining shares.

Related posts:

CapitaMalls Asia: Weakening technicals.

Golden Agriculture: Inverted black hammer.

SPH: Reading the lines.