Charts in brief: 16 Mar 10

The STI defied gravity to add 22.1 points today, closing at 2,896.43, it is only a bit more than 100 points away from the magic number 3,000.  However, today's volume of 1,143,954,590 and total value of  $989,019,766 suggest that the upward movement is weak.  Volume is low and the value is lower.  Activity has clearly reduced and moved to the pennies.

It would not be wrong to lock in some gains for anyone vested in index linked counters. For anyone looking to add to their positions, waiting for a pullback might be prudent.  However, if in doubt, my strategy is always to hedge.  For the person who is vested, divesting half of his position might be a good idea.  For the person looking to add to his position despite the technicals, adding a smallish position would be less risky.

Saizen REIT: 469 lots sold down at 16c towards the closing bell pushed the MFI further into oversold territory.  Stochastics has also dipped into oversold territory.  That buying momentum is lacking is quite obvious.  Any further weakness would be an opportunity to load up.

Golden Agriculture:  Price closed unchanged on lower volume today. It has formed higher highs and higher lows since early Feb.  Uptrend is intact and I am still waiting to collect at supports.

Healthway Medical: A black candle day on increased volume.  Since mid January, this is a rare black candle day with such high volume.  A decline in the OBV indicates that distribution is underway.  A lower high and a lower low on the MFI confirms weaker buying momentum. The MACD is closing in on the signal line which might result in a bearish crossover.  Initial support is still at 16c and it looks like it will be tested.

Charts in brief: 15 Mar 10

I decided to just do a summary, charts not included, to highlight what I think might be some interesting observations for a few counters I charted this evening.  I call this "Charts in brief" and this will be something I might do more often as and when I don't really have a lot to say about any counter in particular.

Golden Agriculture: The sell signal on the MACD is confirmed today.  Price closed at 57c, forming a doji, on reduced volume.  I am still waiting to accumulate at support.  Please see: Golden Agriculture: Waiting for support.

AIMS AMP Capital Industrial REIT:  MFI and OBV both turned up.  The MACD has crossed zero, suggesting a return of positive momentum.  An expansion in trading volume with the next upmove in price would be nice.  Please see: STI and Aims Amp Capital Industrial REIT.

Healthway Medical:  A black candle day but on much reduced volume.  OBV is flat.  So, no distribution.  MFI declined but is still in the overbought region.  Although the uptrend is intact, buying on weakness would be a safer option than buying now and hoping for a breakout.  Basically, the risk premium is much higher now.  Please see: Healthway Medical: A retest of recent high.

Saizen REIT: MACD seems set to make a bearish crossover with the signal line.  MFI has gone into oversold territory; buying momentum is weak. OBV has dipped.  This is a sign of distribution.  The uptrend is intact even if the price should retreat to 15.5c. I know many people ready to pounce on the counter if this should happen.  I would buy more on weakness.  Please see: Saizen REIT: March 2010 presentation.

Genting SP:  This counter has been enjoying a revival lately but on decreasing volume.  Daily volume has been lower with the price moving higher since 5 March, the day when price and volume spiked up.  This suggests that the buyers are, probably, mostly shortists covering their positions.  This is not to say that the price cannot move higher but without a significant number of new participants coming in on the long side, any move upwards would lack sustainability.  Please see: Genting SP: Stale bulls' second chance?