SPH: Another white candle.

My favourite blue chip is in top form and has been advancing for several days in a row.  Today, another white candle was formed as price closed at the high of $4.13.  Could we see a retest of $4.20?

Some analysts are saying that there could be a bumper dividend and that is driving accumulation.  Some people are saying that it is just quarterly window dressing and that it is just a blip.  Which camp is right?  I don't know but volume has been pretty high in the last two sessions as MACD formed a bullish crossover and rose in positive territory. The MFI has formed an almost straight line up and seems set to cross into overbought territory in the next session. RSI has already peeked into overbought territory.  OBV, although rising, does not show very strong accumulation activity.

What would I do? If SPH does retest $4.20, I expect that to be a strong resistance as many who missed selling then would sell now.  So, I would sell some at $4.20 and buy back if price retraces to the 20dMA.  Good luck to fellow shareholders.

Related post:
SPH: Doji at $4.00.

SPH +0.7%; More upside as bumper dividend eyed: UOB
Wednesday, 01 September 2010

© 2010 - The Edge Singapore

Golden Agriculture: Breaking out.

Yesterday, I mentioned Golden Agriculture's "next resistance is at 57c. This is where we find the declining 20dMA and the downtrend line." Today, it broke this resistance level in a most convincing manner as volume expanded significantly.  Price touched a high of 58.5c before closing at 58c.

58.5c is a many times tested resistance level and one wonders if this could be taken out as we eye 62c, the longer term resistance which I said could possibly be tested.

Technically, chances are good with both the MFI and RSI rising strongly. Being at around 50%, they are nowhere near overbought and they could go much higher.  The OBV shows accumulation.  The MACD seems ready for a bullish crossover.  Most importantly, volume is the fuel that drives rallies and this has been increasing nicely.  Let us see if this continues to be the case.

Related post:
Golden Agriculture: Moving higher?

China Hongxing: Immediate target in sight?

On 27 August, I mentioned that "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."  Today, China Hongxing closed at 18c on high volume.

The MACD has completed a bullish crossover in positive territory. The MFI is rising, forming higher lows, suggesting strong demand and it is nowhere near overbought yet. OBV shows no sign of distribution and accumulation is powering ahead. RSI is just peeking into overbought. Overall, the immediate target of 19.5c identified on 27 August seems attainable.

Related post:
China Hongxing: Retesting resistance.

Saizen REIT: More insider moves.

A substantial shareholder of Saizen REIT, V-Nee Yeh, increased deemed interest in Saizen REIT from 20.201 % to 21.976 % (209,572,352 units).  This is a consequence of the open market purchase of units by ASM Hudson River Fund,  ASM Asia Recovery (Master) Fund and HC Capital Limited.

AND

Chang Sean Pey, CEO of Saizen REIT, converted 842,000 warrants into 842,000 new units.  He now holds 2,200,000 units of Saizen REIT.  This is 0.23% of total issued capital.

The percentage figure of issued share capital (after the transaction) was calculated based on Saizen REIT’s total issued 956,304,205 units as at 30 August 2010. It should also be noted that Saizen REIT had 490,053,212 warrants outstanding as at 30 August 2010.

Related post: 
Saizen REIT: Insiders buy.