SGX: Correction in the Making?

Interesting day today with many counters breaking 20-Day MA. Bank counters also showing signs of weaknesses with DBS breaching the Resistance turned Support level.

Below is the list of counters of stocks breaking 20-DMA today:

No. Stock Name Triggerred Date Triggerred Rules
1 ASL Marine 8 Jun 2009 ((Price touching MA))
2 Biosensors 8 Jun 2009 ((Price touching MA))
3 Broadway 8 Jun 2009 ((Price touching MA))
4 CH Offshore 8 Jun 2009 ((Price touching MA))
5 China XLX 8 Jun 2009 ((Price touching MA))
6 ChinaAOil 8 Jun 2009 ((Price touching MA))
7 ChinaFish 8 Jun 2009 ((Price touching MA))
8 ComfortDelGro 8 Jun 2009 ((Price touching MA))
9 CSE Global 8 Jun 2009 ((Price touching MA))
10 Ezra 8 Jun 2009 ((Price touching MA))
11 F & N 8 Jun 2009 ((Price touching MA))
12 FIRST RESOURCES LIMITED 8 Jun 2009 ((Price touching MA))
13 Golden Agri 8 Jun 2009 ((Price touching MA))
14 Goodpack 8 Jun 2009 ((Price touching MA))
15 IndoAgri 8 Jun 2009 ((Price touching MA))
16 KepCorp 8 Jun 2009 ((Price touching MA))
17 Longcheer 8 Jun 2009 ((Price touching MA))
18 M1 8 Jun 2009 ((Price touching MA))
19 MacqIntInfra 8 Jun 2009 ((Price touching MA))
20 MERMAID MARITIME PUBLIC CO LTD 8 Jun 2009 ((Price touching MA))
21 Midas 8 Jun 2009 ((Price touching MA))
22 Rotary 8 Jun 2009 ((Price touching MA))
23 SembCorp 8 Jun 2009 ((Price touching MA))
24 ST Engg 8 Jun 2009 ((Price touching MA))
25 StamfordLd 8 Jun 2009 ((Price touching MA))
26 StarHub 8 Jun 2009 ((Price touching MA))
27 Swiber 8 Jun 2009 ((Price touching MA))
28 Swissco 8 Jun 2009 ((Price touching MA))
29 TechOil&Gas 8 Jun 2009 ((Price touching MA))
30 Wing Tai 8 Jun 2009 ((Price touching MA))

SGX: Venture - A respite in uptrend?

SGX: Stock Watch for 19 May (Kepcorp & SGX)

Kepcorp

The current uptrend support line is holding up well. Stock closed marginally with a white candlestick today. Currently still awaiting a 4r1g MacD histogram signal.

• Action to take: Good for a LONG trade if stock trades and has a possibility of closing above $6.31 (20-Days Moving Average) and above previous session's high of $6.32.

SGX

Another stock which caught my attention today is SGX. Currently resting on a conflux of multiple support levels. Watch out for a Gap Resistance at 7.32 to 7.48.

• Action to take: Good for a LONG trade if stock trades above $7.02 (Fibo 38.2% Resistance)

*Caveat emptor - All usual disclaimers apply.
Trades are valid only for a short term time frame

SGX: Stock Watch (SIA, Kepcorp & Olam)

Stock watch for monitoring for next trading session. In order of preference:

1. SIA
2. Kepcorp
3. Olam

*Caveat emptor - All usual disclaimers apply.
Trades are valid only for a short term time frame

CTA SG Stock Alert: 18 May - 22 May

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SGX: CityDev (CT1 SHORT)

Market showing signs of retracement today.
Several counters are retracing from their previous session's high.

Managed to filter out CityDev using CT1 SHORT signals.

Entry: 8.04 (1 bid below previous close)
Stop loss: 8.64 (1 bid above recent high)
Profit: 7.38 ~ 7.63 (gap support conflux with horizontal support)

Those who are interested in shorting may consider this counter. Do note however that this is a counter trend strategy i.e. you will be assuming a greater degree of risk as you are working against the prevailing trend.

*Caveat emptor - All usual disclaimers apply.
Trades are valid only for a short term time frame

SGX: F & N S2M2 (Stock Pick of Day - 15 Apr)

T3B Strategy: F & N is poised for a S2M2 breakout. Conflux of resistances provided by downtrend line and peak. K-line is currently around level 9.



Technical Analysis: We can see a cross-over signal for both MacD and GMMA signal as well. MFI and Stochastics show bearish signals as well.



Entry (E): 2.40 (1 bid below trough)
Stop Loss (S): 2.60 (1 bid above peak)
Profit (P): 2.13 (approximation)

SGX: SPDR Gold (Stock Pick of Day - 14 Apr)

Was monitoring SPDR Gold Shares for the past few trading sessions. Noticed a suitable entry point to LONG for tomorrow. The stock is currently trading in a tight peak and trough range (Peak: 87.64 and Trough: 86.16). Two possible scenarios may happen: 1. Stock breaks trough (no position taken - await for another suitable entry for LONG) or 2. Stock breaks peak

Using Classical S3 entry, the K-line is currently touching the bullish volume bar, which indicates a possible reversal point. The rationale for this trade is as such, the stock is currently downtrending, which means that the chances of a trough breaking is much higher than a peak. Should the stock break the peak, this would indicate a change in sentiments and thus, a translation into a high probability trade.

One may ask why would we want to LONG a downtrending stock? - Answer: there is a possible rebound back to the downtrend line before the stock would resume its downtrend again; this is otherwise known as a Counter Trend strategy. If the above scenario comes into fruition, a lower high would be formed. For those who are acquainted with Technical Analysis, you would have notice the prices resting on 100-Day Moving Average for the past few trading sessions.

If you are interested in trading the counter, you may find it under POEMS CFD or DMA --> look for GLD 10 US$.

SGX: SPDR Gold Shares - A Safe Haven?

Attended the 3rd session of T3B Wealth Creation and Portfolio Management Gathering @ Kreta Ayer People's Theatre yesterday. It was a rather insightful sharing session by Keane with regards to current market conditions and some interesting trading ideas.

Keane touched on an important point which was with regards to the Obama management printing more money to buy up toxic US assets. This would eventually set off high inflationary concerns which would see the erosion of the value of the US$. Investors would thus see gold as a more attractive option for the preservation and growth of wealth. We would thus expect to see an increase in the demand for gold in the mid to long term.

A look at the charts show that now is not the right time to purchase gold shares as it is currently set on a downward trend, after breaking out from its Uptrend Support Line on the 2nd of April. The price will be testing the 200-Day Moving Average (84.95) soon and should that fail to hold we would expect to see the prices plunging towards the previous downtrend line and critical support level at 79.74. Will be looking to accumulate some shares at that level, using low K-line as guidance and break peak signals for entry.