Feeling the stress in Singapore?

"Singapore, one of the world's richest cities, has a land area of just 710 square kilometres (274 square miles) but until recent years, it had avoided the congested feeling of places like Hong Kong and Tokyo.

"Widely acclaimed as one of the world's most "liveable" cities, Singapore is now experiencing urban growth woes as it moves to expand its population to 6.5 million in 20 years, up 30 percent from the current level of five million."

Some facts:

1.  Tourist arrivals surpassed the one million mark in a single month for the first time in July 2010.

2.  Despite increased train frequency during peak demand periods, trains were more cramped than before.

3.  As of July, there were 936,311 vehicles plying the roads of Singapore, with cars accounting for 61.5 percent of the total, compared to 755,000 vehicles just five years ago.

4.  Demand for homes in Singapore's public housing blocks, where 80 percent of the population reside, is also straining supply. Foreigners who enjoy permanent residency and are eligible to purchase public housing totalled 533,000 in 2009, a 37.8 percent increase from 2005.

Read the full article here.
Singapore shows signs of urban stress.
AFP, Wednesday, 25 August 2010.

Raffles Education: Downtrend in force.

Raffles Education's downtrend continues. Distressed shareholders must be wondering if there is any end in sight. 29.5c is where we find the merged 20d and 50d MAs. This level was previously a support and is now resistance. Volume expanded as price drew to a close at 27.5c in the last session.

The MACD is declining in negative territory.  Momentum is clearly negative. After enjoying a brief period of accumulation from 26 July, distribution activity which started on 11 August has wiped out all gains in the OBV by the end of the last session.  Traders who were nimble enough to offload at 31c before the distribution activity took hold would have made a gain assuming they bought in at 29.5c.

Raffles Education's downtrend is in force and it would take a brave punter to try and make money trading this counter. Selling on rebounds is the strategy to adopt here, at least until there are clearer longer term reversal signals.

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

Genting SP: Twin spinning tops.

No matter how bullish analysts might still be about Genting SP, I believe that taking some profit off the table for anyone who is still vested is the prudent thing to do.  Yes, the MFI is still uptrending and OBV shows accumulation.  However, take note that the RSI is in overbought territory and has formed a lower high.  This suggests that the buying momentum is weakening and being overbought, it has to be corrected in time.

The MACD is still rising above the signal line in positive territory but notice how the distance between the two lines is narrowing. Another cautionary signal could be found in the candlesticks formed.  We have twin spinning tops formed in the last two sessions, a sign of indecision and doubly so.  Indecision in an uptrend?  Doesn't sound positive, does it?  Also, notice the huge decline in volume as the counter tries to hang on to its gains.

Genting SP's price seems to have support at $1.50 but gaps are more often than not filled.  So, we could see price touching $1.46 in case of weakness.  From the chart, it is clear that the top of the base formation could be found at $1.30 and this is also where the rising 50dMA would approximate soon.  In case of a dramatic decline, expect strong support at $1.30, therefore.

China Hongxing: Retesting resistance.

On 13 August, I suggested that the immediate support was at 14.5c and anyone who bought some in the sessions which saw a low of 14.5c would be laughing to the bank right now.

China Hongxing's volume expanded today as it retested resistance at 17c. Unlike in early August, the technicals are now looking much stronger and China Hongxing's share price could break 17c this time round.

The MACD has turned up and is poised to form a bullish crossover with the signal line in positive territory. Unlike in early August, the MFI is not in overbought territory now and, this coupled with the higher low formed, bodes well for the counter.  Look at the OBV and we see a picture of gradual accumulation.

Overcoming resistance at 17c gives us an immediate target of 19.5c.  Good luck to readers who are vested.

Related post:
Charts in brief: 13 Aug 10 (Part 1).