STI and AIMS-AMP Capital Industrial REIT.

STI's movement today shows indecision as it started the day higher, see-sawed a bit and closed almost unchanged at 2839.54. What we can say for sure is that the 50dMA at 2810 provides initial support and the rising 100dMA at 2780 provides a stronger support. It remains to be seen if it could overcome the gap resistance at 2850. If it overcomes 2850, it is good news for the bulls.


I know many out there are turning cautious and even bearish but the higher lows and the higher highs on the MFI are encouraging. We see that in the OBV as well. Failing to move higher, the STI should not come crashing down either. Please see my earlier post on how the STI might behave in March: STI: Marching in place in March.

Turning defensive, I bought more units in AIMS-AMP Capital Industrial REIT today at 21c. Fundamentally, I like the numbers. Please see:AIMS-AMP Capital Industrial REIT. This is probably the best value for money industrial property REIT in Singapore right now. Increasing the weightage of this REIT in my portfolio diversifies away from an emphasis I've had on Saizen REIT in recent months.
Technically, the price looks like it has bottomed at 20.5c and has begun to move up. The MACD did a bullish crossover with the signal line and the stochastics has started to move up from the oversold region. 21.5c is the resistance provided by the flat 50dMA. It might take a while for the counter to move up in price but the limited downside makes it technically attractive to increase my investment here.

Golden Agriculture: Buy signal confirmed.

Crude palm oil (CPO) closed up 1.46% today or RM39 to close at RM2,709 (US$811).  The outlook is bullish and CPO's price might push higher yet.  As mentioned in my previous post on Golden Agriculture, this is good news indeed for the company.

Golden Agriculture did a bullish gap up today, closing at 56c, forming a white spinning top.  Indecision?  Seeing how the spinning top did not take place after at least several consecutive days of upmove in price (because at least several days in one direction is required to qualify price movement as a trend), it is unlikely to be a trend reversal signal. 

The buy signal seen in the MACD is confirmed today.  50% on the MFI has lived up to expectations and acted as a support, preventing the index from declining which would have signalled negative buying momentum.  All in all, chances of Golden Agriculture's price pushing higher seems good.  In the event that 57c is taken out, 59c (138.2% Fibo resistance) would be the resistance to watch. Support remains at 50c, a many times tested candlestick support and resistance level which coincides with the rising 100dMA.