Major uptrend still intact, expect big moves

Above is a monthly chart of the STI. Since the low of 2009, we have been in a major uptrend, with only a minor correction in late 2011. Very significantly, we have broken through the previous high of 3313 at end 2010 and it looks likely that the STI will test 3600 soon. Support now is 3313. Capitaland is now resuming its uptrend after some consolidation. Support now is 3.60, with resistance at about 4.00. Boustead: consolidated sideways after hitting a high of 1.485. It looks like it will resume its uptrend. Support at 1.36, resistance is at 1.485. Today's price action was significant, with high volume and huge movement in price. Expect the upward momentum to continue. Noble group. Suffering from weak commodity prices. Price action traced a double bottom at 1.12, and looks poised to break out of the downtrend. Broken through the 21 EMA, but stopped by the 55 EMA. Significant resistance at 1.175. A close above that will signify a possible trend reversal.

SIA engineering, capitaland, boustead

SIA Engineering Company is a leading aircraft maintenance, repair and overhaul (MRO) company providing total maintenance solutions to an expanding client base of international airlines. This counter is one of the those recommended by Phillip Research. It closed at 5.04 today, just shy of the all time high of 5.10 in Jan 2013. This company provides excellent dividend. Last year, it paid out a total of $0.22 per share, and at a price of say $4.00 in 2012, you still get a yield of 5.5% and a very healthy capital appreciation to boot since it is now trading at about $5.00! Phillip Research has a target price of about $6.00, and looking at the price action, it certainly looks achievable in 2013. Technically, Capitaland is in a good sweet spot to go long, having retraced 61.8% between the peak of $4.03 and $2.40. It has been consolidating in a tight range from mid-march and looks poised to breakout to the upside. My target for capitaland is 4.03 (the previous high), with a stop of around 3.30 (the previous low). Boustead is another counter recommended by Phillip Research. It has been in a nice uptrend since late 2012, and its rise accelerated once it passed the $1.00 mark. It has retraced close to 61.8% from its previous high of 1.485 and is now trading around 1.38. Support is at 1.36 and my upside target is 1.485. Stop would be at 1.33 (the previous resistance).

uptrend still intact? A look at capitaland

Above is a daily end-of-day chart of the STI. The major trend is still up, medium trend is still up, but on the shorter term, it looks like it will continue to trend sideways as the momentum as shown by the MACD is still weak. Support is at 3247 and resistance is at 3330. My recommended strategy is to buy blue chip counters on pull-backs. Above is a weekly chart of Capitaland. Its price has retraced somewhat from a peak of 4.025 and closed today at 3.48. There is strong support at the 61.8% fibonacci retracement level of 3.4 and this looks like a good time to accumulate this counter in anticipation of a break to the upside. Upside target would be the previous high of 4.025 with a stop of 3.28. (below the 144-day EMA).

The trend is your friend

Above is an end-of-day daily chart of the STI. It has been trending sideways since Feb 2013, with momentum on a downtrend. However, things appear different now that the STI hit a new 2013 high on 3 Apr and also correspondingly, the MACD made a higher high. All the moving averages are also trending higher. So i would suggest buying on pull backs. For example - see below chart: Above is an end-of-day daily chart of Boustead. This company provides niche Energy-Related Engineering, Water & Wastewater Engineering and Real Estate Solutions. It is in a strong long term uptrend, and after a nice pullback, it is showing signs of a reversal back to the main uptrend. Support is at about 1.36 and resistance is at 1.485.

STI and Golden agri - reversal?

Above is a daily chart of the STI. After yesterday's huge down candle, today we have a doji. This normally signals a reversal in trend, which in this case, would be a reversal of the downtrend since mid february. But a close below the previous low (3235) would signal a continuation of the correction. Above is a daily chart of Golden Agri. Poorer than expected results drove the share price lower. But $0.60 looks like a good support level and an entry for this counter. Resistance is at $0.685.

Still going sideways

Above is a daily chart of the STI. The STI is still going sideways. The focus is back to the US and EU. The recovery is US is gaining traction, with better housing stats and unemployment numbers. EU remains stuck in a recession. Earnings coming in are mixed, and thus for now, the markets are gyrating quite wildly. But major trend is still up, momentum seems to be turning up. Key levels are 3251 support and 3311 resistance for the STI.

Above is a daily chart of the STI. We are continuing to chop along. But I wish to draw your attention to my observations. Strong support is seen at 3251. This level has been tested twice and has held. A close below that level may signal a sell off to about 3200. For a confirmed continuation of the uptrend, the STI needs a close above 3320. But again, i say any pull back is a good opportunity to buy.