Genting SP: Inverted white hammer.

Price touched a high of $1.29 before closing at $1.27, forming an inverted white hammer in the process.  This suggests some weakness: the upmove lacks conviction.  The unimpressive volume confirms this observation.

Although the OBV is still rising, suggesting continuing accumulation, there is some profit taking going on and a stalling demand.  This stall in demand is confirmed by a flat MFI which is bordering on overbought.

Many are expecting Genting SP to report a set of sterling numbers but till then, could we see price softening somewhat to retest support provided by the rising 20dMA? There is a chance and that might be an opportunity for any bulls on Genting SP to accumulate.

Genting Singapore rises to 6-month high on earnings outlook. Genting Singapore Plc climbed to its highest level in six months as better-than-estimated earnings from rival Las Vegas Sands Corp. sparked speculation the company will also report strong earnings.

© 2010 - The Edge Singapore

Thursday, 29 July 2010

SPH: Rising on low volume.

Price broke out of the many times tested resistance of $4.08 today to close at $4.10.  However, the relatively low volume suggests that the price rose due to a lack of sellers and not because of an abundance of buyers.  So, it throws up the question of sustainability.

The fact that there is continuing accumulation is not in doubt.  The rising OBV confirms this.  The MFI has recaptured its uptrend support, it would seem, and this suggests a return of demand.

Lacklustre volume not withstanding, price could possibly rise further to retest $4.17 without a significant expansion in volume if selling pressure remains absent. Such a rise in price would, however, be very fragile.

NOL: Breakout.

NOL rose to close at its high of the day at $2.08 on significantly higher volume.  With this, it has broken out of the symmetrical triangle observed some time back.  OBV has been somewhat choppy but rising further would indicate increased accumulation.  MFI has formed an uptrend recently and this suggests increased demand. 

The next resistance is at $2.13, the high of 21 Jun which also did a gap fill then. This is a price which market participants are likely to remember. Taking this out convincingly would give an intial target of $2.28 as suggested by the 138.2% Fibo line.

NOL rises on strong shipping outlook. NOL will report its second quarter earnings on Aug 6.

© 2010 - The Edge Singapore

Thursday, 29 July 2010

CapitaMalls Asia: Shopping spree planned.

"CapitaMalls Asia (CMAL.SI) could spend as much as S$3 billion to develop or buy shopping malls in Singapore, Malaysia and China, by using some borrowings on top of the S$1 billion cash that it has, partly from the proceeds of listing CapitaMalls Malaysia Trusts (CAMA.KL), the local press reported, quoting CapitaMalls' chief executive." Thursday, 29 July 2010, The Edge Singapore.

 
This bit of news sent the share price of CapitaMalls Asia up today to close at $2.10 which is the resistance provided by the flat 50dMA.  The MACD has risen above the signal line in negative territory. MFI shows a sustained demand.  OBV shows accumulation.  Indeed, volume expanded more than three times over the previous session and is the highest since 12 Feb 2010. If the momentum continues, we could see price rising to retest the downtrend resistance which coincides with the declining 100dMA at about $2.16.