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.

STI - sideways and looking tired

Here we have the daily chart of the STI. February has been a choppy month so far. Support at the 21 period moving average is still holding and the major trend is still up. But my main concern is the falling MACD and the inability of the STI to hold on to any gains. Resistance is at 3311 and support is at 3273. If 3273 is broken, next support is at 3250. Since longer term trend is up, i would suggest buying blue chips on corrections.

STI - momentum is on a downtrend

above is a daily chart of the STI. The STI has had a strong run up since Nov 2012, peaking at 3320 on 4 Feb 2013. However, after that, the STI has not been able to test that level again. The runup now looks tired, and we can see that the MACD peaked sometime in early Jan 2013 and made a lower high when the STI made a new high. This is bearish divergence and my guess is that the STI will come under selling pressure every time it attempts to rally. The 21-day moving average provided some support during the last correction and it looks like the STI will test that support around 3250-3260 if the STI consolidates further. Major trend is still up, but it looks like the STI needs to shed some points before buyers come in again.

STI - key resistance reached

Above is a weekly chart of the STI stretching all the way back to 2007. We had a major market crash in july 2007, which bottomed out in Oct 2008 and Mar 2009. We have been in an uptrend since then, which peaked in Oct 2010, then a correction until late September 2011. Since then, we have been chopping around and from Jul 2012 the upward momentum started to get stronger. And since we have been focusing on the downside, with all the talk about the weak global economy, we have failed to see that we have hit the previous high in Oct 2010. At this juncture, i see that the upward momentum is very strong. In fact, much stronger than the time in 2010 when the STI hit a high of 3314. So i think that this rally still has much going for it, and i would advise going long on any pull back. Next resistance levels are at 3600 and 3900.

a look at STI and selected counters

Above is a weekly chart of the STI. I am showing a weekly chart to give us a better feel of the major trends. The STI had quite a remarkable runup since mid November 2012 and is has been trading sideways for about 3 weeks now. Support is strong at 3200 with resistance at 3238. The major trend is up, and you can see that since Oct 2011, we have been making higher highs and higher lows. Any weakness in the market should be a good opportunity to go long.

Here is a daily chart of Noble Group. Consolidating after a huge runup in December 2012. Looks poised for another leg up. Support is 2.15. Resistance is 1.25, then 1.265 (the start of the huge gap down).

Genting is also consolidating after a runup in December, but the upside potential appears to be rather huge. Support is at 1.420 and resistance is at 1.635. There is also a bullish divergence between the MACD and the price between the july bottom and the Oct bottom, which is playing itself out now.

STI - great start to 2013

Above is a weekly chart of the STI. The STI has powered up strongly since late November 2012 and it does look like a minor correction is taking place. So far the support at 3172 has yet to be tested. Today, the STI went to a low of 3185 before rebounding strongly to close above 3200. The major trend is still up, but i think this is the start of a minor correction. I expect the STI to drop to 3150 before retesting the year's high of 3242. Any pull backs would be good buying opportunity, especially property, oil and gas, and commodities stocks as the outlook for the China economy going forward is positive.