Raffles Education: Doji at 28c.

That selling pressure has eased is quite obvious. The MFI has turned up somewhat when it looked as if it was destined to fall into oversold territory. The RSI is rising just a tad in oversold territory. The MACD is just into negative territory and things are looking too marginal to say momentum has turned negative at the moment. Is there a chance of a rebound?

Believe it or not, the uptrend for Raffles Education which started on 21 Dec 2010 is still intact. The trendline support is rising towards 27.5c which is the low today and it would soon reach 28c in the next week. So, what does conventional wisdom say? Buy at supports in an uptrend.

It could also be said that price has been retreating on declining volume and that the doji formed today on relatively low volume is a possible reversal signal. All good but we will need confirmation tomorrow. That's the way of TA. Always needs confirmation.

What would AK71 do? Nothing. Why? Well, the declining 200dMA is at 29c or so. That could become quite a strong resistance given the bearish sentiments with China possibly increasing interest rates again soon to weaken inflationary pressures. Raffles Education's ambition of becoming a real estate developer in China could be a victim of bad timing.

When in doubt, I stay out.

Related post:
Raffles Education: Support at 30c.

NOL: Return to profit.

NOL reported a return to profit which beats analysts' estimates and declared a dividend of 4.6c per share!  Good news for shareholders, indeed!

Technically, the flat 200dMA is providing support and we could see price going higher tomorrow. I expect initial resistance at $2.18 which is where we find the rising 100dMA. Stronger resistance is expected at $2.23 which is where we find the 50dMA and it is also where a dead cross was formed by the declining 20dMA and the 50dMA.

Expect some selling into strength to take place as the MFI has been forming lower highs. This suggests a dampening of demand. Watch those resistance levels. If they should be taken out on the back of high volume, then, price could go higher. $2.30 would be next.

Neptune Orient reports better-than-estimated profit on trade
Wednesday, 16 February 2011

© 2011 - The Edge Singapore

NOL swings back to black with fourth quarter net earnings at US$177 million. That compared to a US$211 million loss in the same period a year ago.
Wednesday, 16 February 2011

© 2011 - The Edge Singapore

Related post:
NOL: Full steam ahead.

CapitaMalls Asia: Moving higher?

In a sea of red, CapitaMalls Asia is one of few counters which gained in today's session. The company will release its financial results for the full year ended 31 December 2010 on Thursday, 17 February 2011 before trading hours. I am hopeful that results would be positive.

Connecting the lows of 31 Jan and 14 Feb gives us an uptrend support and price traded above this support today. $1.95 is a minor resistance and I expect it to be taken out if volume were to expand in the next session. The momentum oscillators are showing positive signs and there is a nice chance of price moving higher.

The longer term downtrend is still intact and if we connect the highs of 11 Dec 09 and 7 Oct 10, it is amply clear. Multiple resistance levels must be overcome for this counter to move much higher in price but none as foreboding as this long term downtrend resistance line.

What am I going to do? I will wait for the results on Thursday and see how things turn out. My exposure to this counter are at the prices of $1.85 to $1.92.

Related post:
CapitaMalls Asia: Bouncing off $1.88 support.