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.