On 03/Sept, Singapore shares end higher Friday boasted by better-than-expected increase in U.S. pending home sales and fall in weekly jobless claims.

STI ended higher at 3002.56 (0.5%) with LOW VOL of 1.45 billion shares traded compared with 1.72 billion shares Thursday. In the broader market, gainers outnumbered losers 263 to 186. Today STI continue to close above 3000 level with lack of conviction as only 59% of stocks in positive region despite a gain of 0.53% in index.

Headline in STI

Before market close

Golden Agri-Resources plans to form a partnership with the Liberian government to develop a US$1.6 billion project for cultivation of sustainable palm oil.

Technical Analysis on STI

Immediate Resistance of STI: 3043

Immediate Support of STI: 3000

MY sentiment on STI: See weekly outlook tomorrow

On Thursday, Kepcorp re-tested its support at $9 and closed at $9 with LOW volume of 3.33 million shares traded.

A black candle sticks with short upper/lower shadow indicates that the rally has lost its momentum as the prices break the resistance at $9 unconvincingly.

RSI & MACD are bullish as RSI continue to trend upwards.

Important Resistance of Kepcorp: $9.31

Immediate Support of Kepcorp: $9

Currently prices are well above the 20/50/100/200 days MA.

As of now, Kepcorp is still supported on the rising trend lines although prices seem to be shaky above the $9 resistance turn support.

We would suggest watching the support at $9 and see if prices can be supported at that level for trading opportunities especially if you have miss the previous buying chance at $8.69.

But do note that the resistance at $9.31 will be a tough nut to crack.

On Thursday, Cosco re-tested its major resistance at $1.65 and closed at $1.61 with LOW volume of 9.84 million shares traded.

A dark cloud occurred (which indicates that prices moved up strongly on the previous bar, opened higher, but then closed significantly lower).  This implies weakness as the momentum appears to be shifting from the bulls to the bears.  Note that the lower the close of the black candle (relative to the white candle), the more bearish the dark cloud pattern.

RSI & MACD are bullish as MACD just performed a “golden cross” in recent sessions.

Important Resistance of Cosco: $1.65

Immediate Support of Kepcorp: $1.54

Currently prices are well above the 20/50/100/200 days MA.

We would not encourage buying Cosco now since the prices seems to have issues breaking the major resistance at $1.65.

Instead we would wait to see if $1.65 resistance can be breached at high volume before entry.

On 02/Sept, Singapore shares end higher Thursday as better-than-expected U.S. manufacturing data boost the optimism on economics growth.

STI ended higher at 2986.7 (0.13%) with regular VOL of 1.72 billion shares traded compared with 1.67 billion shares Wednesday. In the broader market, gainers outnumbered losers 273 to 185. In the morning, STI gap up at 3013 but failed to maintain above the important resistance of 3000 and closed almost flat.

Headline in STI

Before market close

The Board of Directors of NZ Farming Systems Uruguay (NZFSU) has advise stakeholders to accept Olam takeover offer at NZ 70 cents/share

After market close

Singapore PMI fell 2.8 points from July to 49.4 in August after growing for 15 straight months. A reading above 50 suggested an expansion in manufacturing activity while a reading below 50 indicates contraction.

Technical Analysis on STI

Immediate Resistance of STI: 3000

Immediate Support of STI: 2950

MY sentiment on STI: We would not suggest buying stocks now since the market sentiment is not as bullish as we thought. If vested, we will watch out for the supports and not start selling at this moment.

On Wednesday, Wilmar re-tested the gap support at $6.19 and closed at $6.31 with LOW volume of 9.45 million shares traded.

A white candle sticks with long upper shadow affirms the strength of the new resistance turned support at $6.19.

Both RSI & MACD are bullish as MACD lines about to perform a “golden cross”.

Important Resistance of Wilmar: $6.47

Immediate Support of Wilmar: $6.19

Currently prices are supported at technical / 20/50/100 days MA at $6.19

As shown from the charts, Wilmar managed to trend upwards inside the rising channel since the gap down May 2010.

We would expect the support at $6.19 to be very strong since the breakout just occurred on 31/Aug with high volume of 55.7 million shares.

Thus we would encourage buying near the support level of $6.19 if interested in the palm oil business.

On Wednesday, SPH breakout of $4.08 major resistance and closed at $4.13 with HIGH volume of 5.48 million shares traded.

Three white candles occurred in the last three days.  Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Both RSI & MACD are bullish as RSI surge upwards sharply.

Important Resistance of SPH: $4.20

Immediate Support of SPH: $4.08

Currently prices are well above 20/50/100/200 days MA

For the past 2 session, SPH has been trading at very high volume with investors buying up the stock to push the prices higher.

We would not suggest buy this stock now since it is already near to major resistance and RSI approaching “overbought region”.

In fact, we expect the 2 years high resistance at $4.20 to be very strong and thus the risk/reward ratio will be low.

On 01/Sept, Singapore shares end higher Wednesday as good PMI data from China helped to bolster the confidence that world economy is moderating and not declining.

STI ended higher at 2982.83 (1.1%) with regular VOL of 1.66 billion shares traded compared with 1.67 billion shares Tuesday. In the broader market, gainers outnumbered losers 328 to 134.  Today STI achieve a good rally with 71% of stocks ended positive despite regular trading activities. It seems that the China PMI data certainly heighten the confidence of investors.

AmFraser Securities strategist Najeeb Jarhom said the 3,000 level “should be seen soon, with an even chance (this) year’s high of 3,043 being tested as well.”

However, Jarhom noted uncertainties over the U.S. economy linger and said Wall Street could come under pressure in October or November if the Obama administration acts late on providing fresh stimulus measures.

Headline in STI

China government reported their Purchasing Managers Index rose to 51.7 in August from 51.2 in July. A separate PMI calculated by HSBC rose to 51.9 from 49.4, rebounding beyond the 50 threshold level and into growth.

Technical Analysis on STI

Immediate Resistance of STI: 3000

Immediate Support of STI: 2950

MY sentiment on STI: STI may possible re-test 3000 resistance within this week; however we would not encourage buying unless this psychological resistance is breach at high volume.

On Tuesday, SuntecReit re-tested the major resistance at $1.42 and closed at $1.42 with LOW volume of 4.24 million shares traded.

A white candle sticks with no upper/lower shadow display the determination in investors wanting to break the major resistance.

Both RSI & MACD are bullish as RSI continue to trend upwards.

Important Resistance of SuntecReit: $1.42

Immediate Support of SuntecReit: $1.39

Currently prices are well supported above 20/50/100/200 days MA

Till now prices are well supported by the “rising trend line” but we would not encourage entering now.

Going upwards, SuntecReit will have many resistances to overcome such as $1.42 & $1.45 respectively.

We will suggest entering if prices can breakout of major resistance $1.45 at HIGH volume.

On Tuesday, Ezra announced the one-for-five rights priced at S$1.18 each.

Both RSI & MACD are turning flat as MACD lines began to converge.

Important Resistance of Ezra: $1.82

Immediate Support of Ezra: $1.74

Currently prices are well below the 20/50/100/200 days MA

Given that Ezra announced “Right issues” today, most likely it will create a knee jerk effect on the prices and create selling pressure.

However current prices are almost at “oversold region” thus we would not think it will be a big drop.

Many readers have asked about this stock today but it would not be wise to enter on the first day since we are unsure of its impact.

Instead we will monitor respective support/resistance as plotted on my chart to see if price can be supported at that level before entry.

Gentle reminder: Do not attempt to catch a falling knife as it is very dangerous.

On 31/Aug, Singapore shares end lower Tuesday as overnight decline on Wall Street prompt investors to head for safety

STI ended lower at 2950.33 (0.2%) with regular VOL of 1.67 billion shares traded compared with 1.38 billion shares Monday. In the broader market, losers outnumbered gainers 329 to 153.  Today STI ended with higher volume compared to recent trading sessions with 68% of stocks in negative zone. These indicate that confidence of the investors has been shaken and could possibly trigger another sell down.

Headline in STI

Before market close

Ezra Holdings Limited will issue one-for-five rights priced at S$1.18 each to raise up to S$168.4 million

Kim Eng Holdings Limited fails to reach the agreement on the possible strategic investment in the stock broking business of Inter-Pacific Securities Sdn Bhd.

Yongnam Holdings Limited has won the first contract for the MRT Downtown Line 2 valued at S$25 million.

Technical Analysis on STI

Immediate Resistance of STI: 2950

Immediate Support of STI: 2915

MY sentiment on STI: Today STI pullback and closed right at the resistance/support at 2950. We suspect that STI may re-test 2915 in short term and encourage investors to watch out for this support.

On 30/Aug, Singapore shares end higher Monday as Fed’s promise to prevent “double dip” at all cost boost the market sentiment.

STI ended higher at 2957.06 (0.6%) with LOW VOL of 1.38 billion shares traded compared with 1.36 billion shares Friday. In the broader market, gainers outnumbered losers 257 to 188.  Today STI performed a very weak rally with only 58% of stocks in positive and relatively low trading activities. It seems that traders continue to remain side line for time being.

Headline in STI

Before market close

Singapore implements new policies to cool the property market after prices surged to record highs creating fears of a bubble.

Singapore plan to spend $44 billion over 10 years to increase the capacity of its subway network due to the huge immigration-driven population growth ahead.

Yangzijiang Shipbuilding (Holdings) Ltd has agreed on a joint venture company with Shanghai Bestway Marine Engineering Design Co., Ltd. & Jiangsu Zhongzhou Marine Equipment Co., Ltd to offer design services for shipbuilding.

Technical Analysis on STI

Immediate Resistance of STI: 3000

Immediate Support of STI: 2950

MY sentiment on STI: Today STI break through the resistance at 2950 in a weak manner, thus high chances that it may swing back within these few days.

On Friday, Armstrong closed at $0.455 with LOW volume of 2.72 million shares traded.

A white candle sticks with short lower shadow indicates that prices are trying to establish the support at $0.445.

Both RSI & MACD are turning bullish as MACD begin to converge together.

Important Resistance of Armstrong: $0.485

Immediate Support of Armstrong: $0.46

Currently prices are supported by the technical /20 / 50 days MA at $0.46.

Armstrong has always been in our watch list and heavily vested by some of our fellow traders.

Armstrong rose from the $0.1 in Mar 2009 to current prices of $0.455 as of 27/Aug.

The technical analysis for Armstrong is relative simply; Repeated “consolidation and breakout” driven by good earnings and fundamental of the company.

However we would not encourage buying now but watch if prices can pullback to the major support at $0.415 for better entry price.

Otherwise we would consider buying if the all time high resistance at $0.485 breakout.

In addition, do look for the dividend status as shown below:

DIVIDEND: SGD 0.02 ONE-TIER TAX
Record Date: 14 Sep 2010
Payable Date: 30 Sep 2010

Armstrong’s 2Q2010 Net Profit Soars 125.9% To S$7.1 Million:  http://armstrong.listedcompany.com/news.html/id/219359

On Friday, Capitaland re-tested the support turned resistance at $4.02 and closed at $3.98 with LOW volume of 10.4 million shares traded.

A black candle sticks with short lower shadow affirms that prices having difficulty in breaking the resistance.

Both RSI & MACD are flat as both indicators trend side ways.

Important Resistance of Capitaland: $4.02

Immediate Support of Capitaland: $3.90

Currently prices are supported by the technical /200 days MA at $3.90 while resisted by technical / 20 days MA at $4.02.

We would not suggest buying now since prices are too near to the support turned resistance at $4.02.

Instead we will watch the major support at $3.90 and hope that it can hold.

If support at $3.90 were to be breached at high volume, it will be a bearish signal since it is a 200 days MA cross down and formed the falling trend of “Lower High” & “”Lower Low”

On Friday, Singtel re-test the support at $2.99 and closed at $3 with LOW volume of 13.3 million shares traded.

A black candle sticks with long upper/lower shadow similar to Doji indicates that the selling momentum has been reduced as it approaches the $2.99 support.

Both RSI & MACD are turning bullish as MACD about to perform a “golden cross”

Important Resistance of Singtel: $3.05

Immediate Support of Singtel: $2.99

Currently prices are resisted by the 20 / 50 days MA.

As we have mentioned in our previous report, we suspect that the critical resistance at $3.08 will be very strong for Singtel.

In fact, the prices already had issues with breaking the minor resistance at $3.05.

If vested, we would suggest looking out for the support at $2.99.

All the recent gains will be erased once support at $2.99 breached and could create another round of selling.

On Friday, Golden Agri broke its major support at $0.54 and closed at $0.535 with LOW volume of 42.5 million shares traded.

A black candle sticks with no upper/lower shadow affirms to the determination of the investors in selling this stock.

RSI & MACD are bearish as both indicators trend downwards.

Important Resistance of Golden Agri: $0.54

Immediate Support of Golden Agri: $0.525

Currently prices are well below the 20 / 50/100/200 days MA.

Golden Agri display a bearish signal on Friday. See reasons below:

1)      It broke the rising trend line that was established since May 2010

2)      It cross down the psychological support 200 days MA

3)      It cross down the major technical support at $0.54

4)      It cross down the Fibonacci support 61.8%

5)      It performs all the above action at increased volume compared to recent sessions.

The next immediate support would be technical/ Fibonacci support 78.6% at $0.525.

We would hope to see if Golden Agri could recover above $0.54 resistance before entry otherwise just watch if the support at $0.525 can hold.

In last week, STI merely gain 3 points from the opening of 2936 and close higher at 2939. A white candle sticks with long lower shadow similar to “Hammer” affirms that the support at 2915 is gaining its ground.

Key US Economics Data reported:

On Tuesday US government reported that previously owned homes sales dropped a record of 27.2 percent to 3.83 million units from June which is the worst level since May 1995.

On Wednesday, another report on durable goods orders excluding transportation dropped 3.8 percent which is the biggest plunge since January 2009 after rising 0.2 percent in June

All these data are hinting at the current sluggish economic growth though “Double Dip” is unlikely. However investors will remain cautious ahead despite of Fed’s promise to prevent “Double Dip” at all cost on Friday’s speech.

The average loss for S&P 500 is 0.7 percent based on data from 1950. However four out of the last five Septembers ended positive except Sep 2008.

Important US data in next week includes:

1)     Monday: Personal income and the Dallas Fed survey

2)     Tuesday: Chicago PMI

3)     Wednesday: Construction spending & ADP employment report

4)     Thursday: Weekly jobless claims, productivity and costs; pending home sales and factory orders:

5)     Friday: ISM non manufacturing data & August employment report

Important China data in next week includes:

6)     Wednesday: Manufacturing PMI

7)     Friday: Non manufacturing PMI

Technical Analysis on STI

STI index remains directionless at LOW volume as investors stay at sideline.

Important points to note

1) In weekly charts, a white candle sticks with long lower shadow demonstrates the strength of the technician support at 2915.

2) The weekly trading volume decreases since the direction ahead is unclear

3) MACD and RSI indicators are neutral as MACD lines are closely tie together.

4) STI is currently sustained by minor technical support at 2915

5) We would see STI 2900 as a very strong support as technical/20 weeks MA & 50/100 days MA is near that level.

Important resistance of STI: 2950 (Daily charts)

Immediate Support of STI: 2915 (Daily charts)

MY tactics: STI continue to rest at soft support of 2915 and relatively no reason for any strong up rise in stocks. Therefore we would suggest investing small portion if interested.

On Friday, ST Eng re-tested its major resistance at $3.18 and closed at $3.15 with LOW volume of 1.56 million shares traded.

A black candle sticks with long upper shadow indicates the profit taking when prices approaches the resistance at $3.18.

Both RSI & MACD are turning bullish as MACD lines began to converse together.

Important Resistance of ST Eng: $3.18

Immediate Support of ST Eng: $3.11

Currently prices are well below the 20/50/100/200 days MA.

Since Jan 2010, ST Eng has been swinging from $3.33 to $3.02 for the past few days.

The prices trends along a gentle rising slope almost similar to a consolidation.

We do not expect any high upside on ST Eng as it is considered as a defensive stocks like Singtel.

Investors may consider this stock as a dividend stock for long term holdings.

Although current support at $3.11 seems rather attractive but we would prefer to buy below the $3.09 if possible.

On Friday, Genting re-tested its support at $1.59 and closed at $1.60 with LOW volume of 53 million shares traded.

A spinning top occurred (a spinning top is a candle with a small real body).  Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close).  During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Both RSI & MACD are turning bearish as RSI remains in “overbought region”

Important Resistance of Genting: $1.68

Immediate Support of Genting: $1.59

Currently prices are well below the 20/50/100/200 days MA.

Till now Genting still maintained a “rising trend” as shown on the red lines.

At this point of time, we would not encourage anyone to buy this stock.

Instead we would suggest looking out for the support at $1.59 since MACD divergence is already spotted (Prices going higher but MACD going lower) which indicates the rally is lack of conviction. (Low trading volume for recent sessions also prove this point)

On 27/Aug, Singapore shares end higher Friday though investors remains cautious ahead of 2Q U.S. GDP data and announcement by Fed Ben Bernanke on global economy growth.

STI ended higher at 2938.74 (0.4%) with LOW VOL of 1.36 billion shares traded compared with 1.33 billion shares Thursday. In the broader market, losers outnumbered gainers 220 to 208.  STI ended higher but 51.4% of stocks in fact ended negative with low trading volume.  This is the signal on lack of conviction in the today’s rally and investors mainly bargain hunting.

Headline in STI

After market close

F J Benjamin Holdings Ltd has got the sale and purchase agreement with Catherine Deane to which acquired 829,253 shares worth HK$1.00 each in the capital of Arcangel Limited representing 60% of the Target’s issued share capital from the Vendor.

GuocoLand Ltd. (F17.SG) will issue a 1-for-3 rights issue to rise about S$532.5 million. The company will sell about 296 million shares at S$1.80 each in the rights issue which stands for a discount of 15.9% to the closing price of S$2.14 on Thursday.

Technical Analysis on STI

Immediate Resistance of STI: 2950

Immediate Support of STI: 2915

MY sentiment on STI: See weekly outlook tomorrow.

On Thursday, CapitaMall tested its major support at $1.89 and closed at $1.89 with HIGH volume of 6.26 million shares traded.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body).  The engulfing bearish pattern is bearish and signifies that the momentum may be shifting from the bulls to the bears.

Both RSI & MACD are bearish as MACD perform a “cross down” recently.

Important Resistance of CapitaMall: $1.93

Immediate Support of CapitaMall: $1.89

Currently prices are resisted by technical/20/50/100 days MA at $1.93

As of now prices remain trending on the rising line and resting at a very strong resistance turned support at $1.89.

Normally we would encourage investors to buy at the strong support; however the recent selling pressure has put us off into trading this stock.

High volume indicates that bears are trying to push the prices down while bull continues buying up. With the prices right at critical neckline, we expect high trading activities for next trading sessions.

We would hope to see the “Volume” calm down before investing at around $1.89 support.

On Thursday, Noble falls further and closed at $1.57 with LOW volume of 20.2 million shares traded.

A black candle sticks with short lower shadow indicates the selling pressure despite having low trading volume.

Both RSI & MACD are bearish as MACD perform a “cross down” today.

Important Resistance of Noble: $1.61

Immediate Support of Noble: $1.54

Currently prices are well below 20/50/100/200 days MA.

We do not need a TA expert to tell that Noble is currently very bearish with both long term/short term prices heading downwards.

Do not encourage to buy now but watch for the “final defense” at $1.54.

We expect heavy selling if that gate were to be breached at high volume.

On 26/Aug, Singapore shares end slightly lower Thursday as trader remains wary on the world economic growth after US release yet another weak data on housing market.

STI ended lower at 2925.87 (0.02%) with LOW VOL of 1.33 billion shares traded compared with 1.16 billion shares Wednesday. In the broader market, losers outnumbered gainers 224 to 179.  Today investor’s remains sideline with only 55.6% of stocks in negative and relatively low trading activities.

Headline in STI

After market close

Olam International Ltd. (O32.SG) fourth-quarter net profit rose 98.3% to S$92.57 million compared with S$46.7 million a year ago due to increase sales of commodities products.

Wilmar International Ltd. (F34.SG) has purchased the remaining 17.6 million (8.62%) share stake in Natural Oleochemicals Sdn. Bhd at MYR2.41 per share.

Technical Analysis on STI

Immediate Resistance of STI: 2950

Immediate Support of STI: 2915

MY sentiment on STI: Invest small portion if interested otherwise we would advise to keep sideline first.