Charts in brief: 20 Jul 10.

AIMS AMP Capital Industrial REIT: Volume expanded strongly today as price closed at a high of 22.5c. This move breaks it out of a 0.5c trading range which started in early June. The MFI has broken out of its downtrend, suggesting a return of demand.  Sell signal on the MACD histogram negated as the MACD continues to rise in positive territory above the signal line. The OBV has moved to a new high, suggesting more accumulation than distribution has been going on in recent times. Whether price could break out of the bigger trading range of 20c to 23c remains to be seen. When all the sellers are done selling and buyers want a piece of the action, the only direction would be up.  The fundamentals are strong and the technicals are seemingly benign.  Let's see if the momentum keeps up.

FSL Trust: Price went above the resistance provided by the 50dMA briefly. Closing at 42c is still at resistance provided by the same MA. MACD has just crossed into positive territory. MFI continues to rise. These suggest a return of positive momentum and demand. However, the OBV is flat which suggests a stalemate between accumulation and distribution. Demand is rising but accumulation is not keeping pace which means that there is some selling pressure.  Without an expansion in volume with an upmove in price, the sellers are unlikely to be taken out. With the RSI high in overbought territory, suggesting that price has moved upwards too quickly, the possibility of a slow down or pullback cannot be ruled out. Immediate support remains at 40c while breaking out of 42c resistance could see price do a gap fill at 43.5c and, perhaps, test the lower high of 46c too.

Golden Agriculture: Touched 58.5c, the resistance identified last Friday. Volume shrank for two sessions in a row as price rose. So, price is rising from a lack of sellers, not an abundance of buyers. MFI and OBV continue rising, suggesting rising demand and accumulation.  So, we could perhaps see price moving higher.  If 58.5c is taken out, the next resistance is at 60c.  The MFI nears overbought territory and one wonders if there is much more left to this rally.  This is a valid concern when we see that the RSI is already in overbought territory.  Any pullback would see immediate support at 55c, as provided by the 100dMA.

K-REIT: Uptrend intact.

K-REIT's uptrend is intact with a 1c fall in price from the previous session to $1.21. That price closed at the high of the day is encouraging. MFI continues to trend up which suggests sustained demand.  However, it is nearing overbought and we might see the rise in price slowing or, perhaps, we might see a slight pullback to the 20dMA which approximates the uptrend support. In case of a pullback, support is at $1.15.

What makes $1.22 different from $1.22 in January?  When $1.22 was hit in January, the MAs were farther apart from each other compared to what is observed now. Now, the MAs are closer to each other, more tightly knit, if you like. Such an arrangement is likely to limit volatility and provides a firmer platform for any further upmove in price.  All the MAs are rising and the 50dMA seems poised for a golden cross with the 100dMA.

Volume has been stronger on up days compared to down days and if this persists, price could break $1.22 sooner than later.

K‐REIT Asia will distribute to Unitholders 2.97 cents per unit on Aug 26.

K‐REIT Asia achieves $22m in distributable income for 2Q
Monday, 19 July 2010

© 2010 - The Edge Singapore

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

LMIR: Although falling to 48.5c today means that price has fallen below the downtrend resistance drawn from the high of 11 Jan, price has been falling on lowering volume in the last few sessions.  This is comforting as it means a lack of distribution. This is confirmed by the OBV. 48.5c is resistance turned support for now.

NOL: $2 is an important resistance turned support formed by the merged 20d and 100d MAs. If this were to break, price could fall to $1.94 next. What looks like a symmetrical triangle has formed. Breaking to the downside would find initial support at $1.84, the 23.6% Fibo line which coincides with the 200dMA. Breaking to the upside gives an initial target of $2.22.

Raffles Education: Since hitting a high of 34c on 12 July, there has clearly been distribution activity as suggested by the declining OBV. Price is now supported by the 20dMA at 29.5c. The decline in price in the last few sessions has been accompanied by declining volume and this low volume pullback could be a chance for some brave punters. The MFI is still uptrending and if it were to bounce off its support, price could move higher once more.

SPH: OBV rising strongly, suggesting heavy accumulation. MFI bordering on overbought. MACD rising strongly in positive territory. All these as price closed at $4.08, the target I identified not too long ago. Volume is lower which suggests that price moved higher because there were lesser sellers.  People are probably waiting to see how high it can go.

Related posts:
SPH: BUY calls aplenty.
LMIR: Recovering for real?
Raffles Education: A spectacular white candle.
NOL: Downtrend.

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

FSL Trust: 42c seems like a difficult resistance to overcome at this point in time. This is gap resistance and resistance provided by the declining 50dMA at the same time. RSI has also moved higher up into the overbought region while we see a sell signal on the MACD histogram.  Volume has been reducing as price moved higher. Without an expansion in volume as price moves higher, it is unlikely that 42c could be taken out in the next session. Unless there is some positive newsflow soon, chances of a pullback in price are higher. With all the higher lows formed in the MFI and RSI, the momentum oscillators are clearly uptrending and I expect any pullback to find initial support at 40c.

Genting SP: First touched on 29 Jun, $1.20 has proven to be a tough nut to crack. Volume has been reducing since that day as price stayed above the 20dMA. If we look purely at the 20dMA, the short term uptrend seems to be intact. However, if we look at the MACD, we see a bearish crossover with the signal line on 2 Jul and since then the MACD has been declining beneath the signal line. MFI, RSI and OBV have all flatlined.  There is clearly no trend where these indicators are concerned.  Pay attention to the 20dMA which should be at $1.17 in the next session or so.  If this is breached, price could move lower rapidly.

Healthway Medical: Since price touched a high of 21c on 16 Jun, the MFI has been in decline.  This suggests a weakening demand. However, we do not see a similar decline in the OBV.  In fact, the OBV has gone up which suggests that there is more accumulation than distribution. There is some underlying support and even though demand has weakened, there is little selling pressure.  Immediate support is at 18.5c.

K-REIT: A very nice up day with a very nice white candle as volume more than doubled from the previous session.  Price closed at $1.22, the high of 11 and 12 Jan.  if momentum keeps up and price action goes parabolic, I won't be surprised if we see $1.34 (161.8% Fibo line). At this point in time, it is still a fantasy.

Related posts:
FSL Trust: The skies are clearing up.