Raffles Education: A new property play?

Raffles Education's recent stellar performance in the stock market is now explained. It "has identified a property developer in Singapore to co-develop the Oriental University City (OUC) land to monetise its SGD394m investment in the university city." Read article in Next Insight here. This development is unexpected and could also explain the constant insider buying of the company's shares in the last few months.

Technically,the OBV indicates that accumulation is ongoing while the MFI and RSI are in overbought territories. Although in extremely bullish situations, they could remain overbought for a long while, it is wise to stay cautious and not chase the price higher.

The 200dMA has flattened at 30.5c and it could be resistance turned support. Of course, it would be nice if this could be confirmed if a correction in price happens.

I have fully divested my smallish investment in Raffles Education and extend my best wishes to all who are still vested.

Raffles Education +4.7%; BNP bullish; keeps Buy rating on the stock with a $0.33 target. $0.350 is likely the near-term cap.
Friday, 21 January 2011

© 2011 - The Edge Singapore

Related post:
Raffles Education: Broke resistance.

CapitaMalls Asia: Pulling back on low volume.

I bought more shares of CapitaMalls Asia today at $1.91 as its share price retreated to test its support at $1.90. I like the picture which is forming which suggests a low volume pull back taking place.

With a sell signal appearing on the MACD histogram and the MACD still in negative territory, although it has been rising above the signal line, one could not be faulted for staying cautious. Look at the RSI and it is clear that the trendline support is broken. However, look at the MFI which takes in not just price but volume as well, support is just being tested.

Whether the uptrend support at $1.90 holds up is important for the counter in the near future. If it breaks, the nascent uptrend is in jeopardy and I would turn cautious  If it holds up, price could bounce off and move higher. With the rising 20dMA on course to meet the falling 50dMA, expect some volatility but the technicals do have an upward bias for now and a golden cross is in the works.

Related post:
CapitaMalls Asia: A sustainable reversal?

Golden Agriculture: Looking to the 100dMA.

Golden Agriculture's share price continues to weaken with a gap down today forming a wickless black candle on heavy volume. Price closed at 74c which seems to be a relatively strong support in the immediate future. Some asked if I would consider buying in at 74c. I don't think so.

Of course, price could rebound after a hard sell down. The RSI has entered the oversold region with the MFI just bordering on oversold. However, look at the OBV which shows sharp distribution and this could continue as the MACD dipped into negative territory. If a rebound happens, it would probably do a gap cover to 76c where it would meet with resistance.

On 15 January, I asked "How low could the price fall to? No one can say for sure but drawing a trendline support linking the lows of 30 Sep and 8 Oct coincides with the rising 100dMA and, to me, this suggests a much stronger support at this level and would be a more ideal entry point. The 100dMA is currently at 68.5c." The 100dMA is closing in on 70c and that is when I might consider adding to my long position if there are clearer signs to do so, not sooner.

Golden Agri down on J.P. Morgan report
Thursday, 20 January 2011

© 2011 - The Edge Singapore

Related post:
Golden Agriculture: Short term uptrend broken.

Saizen REIT: Retesting 18c resistance.

Today, Saizen REIT started the day at 18c per unit but in the late afternoon, a single transaction of 3 million units was sold down at 17c before price recovered and closed at 17.5c. This formed a black candle with a lower wick. Immediate support remains at 17c and the rising 20dMA as well as the trendline support suggest that this could be a strong support.

The RSI has declined but remains in overbought region. The MFI has broken its uptrend and falls towards 50% which could act as a support. No sign of distribution on the OBV. Overall, the situation is rather benign and there is support. 18c remains the resistance to watch. It remains the ideal price at which to reduce exposure, being the high of 2010 and likely to remain strong in the memories of market participants.

Related post:
Saizen REIT: Attracting some big money?