On Wednesday, VARD re-test the resistance at $1.14 and closed at $1.12 with HIGH volume of 18.11 million shares traded.

Both RSI & MACD are bullish as RSI trend upwards.

Important Resistance of VARD: $1.14

Immediate Support of VARD: $1.015

Currently prices are supported by 20 days MA.

On 16/April, prices broke the critical support at $1.215 with heavy selling pressure and since then decline strongly to test the support at $1.015

The support at $1.015 is expected to be very strong.

We do not suggest buying this stock for long term holding as it display long term bearish trend. However if interested for short term trading, watch for any break out of the $1.14 resistance with high volume as it affirms on the sign of reversal.

Important News

Singapore Telecommunications Ltd. (Z74.SG, SGAPY) 4Q net profit declined 32.6% to S$868 million compared with S$1.29 billion a year earlier because it booked a loss on the sale of its equity stake in a Pakistan company.

Olam International Ltd. (O32.SG) 3Q net profit rose 10% to S$108.5 million compared with S$98.7 million a year earlier due to higher sales.

On Tuesday, Noble re-tests the support at $1.115 and closed at $1.115 with HIGH volume of 28.08 million shares traded.

RSI & MACD are bearish as RSI began to trend downwards.

Important Resistance of Noble: $1.15

Immediate Support of Noble: $1.115

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

Today, prices re-test the critical support at $1.115 with high selling pressure but managed to stay above this level.

The support at $1.115 is expected to be strong.

The earnings report for Noble was reported today, thus we would not suggest buying tomorrow and rather wait to see the impact of the news before any commitment.

Important News

Neptune Orient Lines Ltd. (N03.SG) 1Q swung to a net profit of US$75.5 million compared with a loss of US$253.6 million because of a one-time gain from the sale of its Singapore headquarters building.

Noble Group Ltd.’s (N21.SG) 1Q net profit fell 62% to US$41.3 million compared with US$110 million a year earlier as lower operating income from its supply-chain business squeezed margins.

 

In last week, STI gain a solid 74 points from the opening of 3370 and close higher at 3444. A white candle stick with no lower shadow indicates that investors have no qualms on buying the stocks higher.

Key Economics Data report:

U.S. Federal Reserve Chairman Ben Bernanke said the shadow banking system still posed a threat to financial stability, and funding markets might still not be able to cope with a major default. Bernanke also laid out how the central bank was looking at asset markets closely for signs of excessive risk taking.

He has also proposed a rule that would force foreign banks operating in the United States to hold more capital here, a measure that has invoked the wrath of the European Union and led to a flurry of critical letters from banks. The Fed chairman said more work was needed to ensure the repo market — the wholesale market banks use for their everyday funding needs — could deal with the potential consequences of a default by a large borrower or a broker-dealer.

Technical Analysis on STI

STI index rally strongly in this week as it roars on good economic news from US.

1) In weekly chart, a white candle stick with no lower shadow affirms on the strength of the rally.

2) The weekly trading volume rises as more investors buy on the strong rally.

3) MACD and RSI indicators are bullish though RSI at overbought region.

4) STI is currently supported by the support at 3325

5) The resistance turned support at 3325 is expected to be strong since the breached of this support indicates end of the rally.

Important resistance of STI:  3 years high (Daily charts)

Immediate support of STI: 3325 (Daily charts)

MY tactics: There has been a lot of buying in this week as investors regains their confidence and buy on the good economic news. The buying pressure is strong and accompanied with huge volume in the market. This is a bullish signal. We suggest to hold onto your stocks if vested as the market remains on the bullish side. But for those who yet to invest, we would remind on the overbought market and do trade with care.

 

On Thursday, Biosensors re-test the resistance at $1.255 and closed at $1.24 with regular volume of 2.35 million shares traded.

RSI & MACD are bullish as RSI trend upwards.

Important Resistance of Biosensors: $1.255

Immediate Support of Biosensors: $1.19

Currently prices are resisted by the 20/200 days MA.

Since Jan 2013, prices have been always well supported by the 200 days MA and managed to rebound off this level.

The support at $1.19 is expected to be strong.

Currently prices have been consolidating along the support of $1.19 but yet failed to break off from $1.255 resistance. The entry at $1.19 support would be good if possible otherwise buy on breakout of $1.255 resistance.

Important News

StarHub Ltd. (CC3.SG) 1Q net profit rose 3.2% to S$91.2 million compared with S$88.4 million a year earlier as the Singapore telecommunications operator cut expenses.