A late night chat with La Papillion in his cbox led to a comparison between F&N and Keppel Corp. I decided to do a TA on both counters to see which one has relative strength.
F&N's close at $3.83 is supported by the rising 200dMA and the trendline support which I have drawn in orange color. Further decline in price would mean that the uptrend is over and it's a double whammy for F&N as the 200dMA which is an indication of long term trend would be violated at the same time. A quick look at the weekly chart indicates the next support to be provided by the 100wMA which is at $3.65.
Using two sets of Fibo lines, we see that the $4.00 mark has two Fibo lines which are very close to each other which indicate that it is an important support. This is further confirmed when we realise that it is a many times tested candlestick resistance turned support as well. Breaking this critical support on 2 Feb was a very bearish sign.
The MFI continues to decline and has formed a new low. It is nearing the oversold region. That the volume has been diminishing as the price weakened in the last two weeks is a positive for the bulls. There is a chance we might have a candlestick formation known as the morning star if the price opens higher than $3.89 in the next session and closes higher. For those who have bought some in the last session or two, good luck.
Keppel Corp's chart, relative to F&N's, shows some strength. Overall, Keppel Corp's price is being held down by a gently rising 200wMA. Everytime its price approaches the 200wMA, it would pull back. The 200wMA is currently at $8.87.
The buying momentum has not weakened as much as F&N's as could be seen in the MFI. The index has been forming higher lows and recently formed a lower high. However, breaking the 100dMA support on high volume to form a doji at $8.18 isn't exactly comforting.
Of course, it is possible that the price action is setting up for a morning star formation as well. This will transpire if next session sees the price opening above $8.20 and closing higher. In the next session, we will also have confirmation if the 100dMA is now a support turned resistance at $8.26 thereabouts.
I have drawn the trendline support in orange color and just like F&N, Keppel Corp is resting on the trendline and if price weakens further in the next session, the fast rising 200dMA is at $7.75 and should provide support.
Both blue chips, in my opinion, have a strong thrill factor at the moment. To those who are vested, sit tight for the ride and good luck.
Related post:
Revisiting Keppel Corporation.