On 14/May, Singapore shares ended lower after sharp losses in European markets.

STI ended lower at 2864.12 (0.7%) with LOW VOL of 1.82 billion shares traded compared with 1.92 billion shares Friday. In the broader market, losers outnumbered gainers 346 to 88. Today STI undergo heavy selling pressure as investors panic sell on possible economics down fall.

Headline in STI

After market close

ComfortDelGro 1Q net profit rose 6.8 per cent from a year ago to S$53.5 million.

STX OSV Holdings 1Q net profit fall 13 per cent year on year to NOK269 million (US$45.83 million).

Technical Analysis on STI

Immediate Resistance of STI: 2906

Immediate Support of STI: 2848

MY sentiment on STI: STI continue to undergo selling pressure as the index failed to recover above the 2906 critical resistance. We expected more selling in this week as the market sentiment has weakened. Do not suggest buying now.

On Friday, Sembmar re-test the support at $4.53 and closed at $4.53 with HIGH volume of 12.64 million shares traded.

During the past 10 bars, there have been 2 white candles and 6 black candles for a net of 4 black candles.  During the past 50 bars, there have been 21 white candles and 23 black candles for a net of 2 black candles.

RSI & MACD are bearish as RSI trend downwards.

Important Resistance of Sembmar: $4.75

Immediate Support of Sembmar: $4.53

Currently prices are supported by 200 days MA at $4.53

For the past 2 trading sessions, prices have been trading in high volume as bulls and bears are fighting at the support of $4.53.

The support at $4.53/$4.36 expected to be strong

The trend of the Sembmar remains bearish and suggest not to buy now till consolidation occurred at the support of $4.53/$4.36.

Marine / Shipping
STX OSV 14 May
Swiber 14 May
KS Energy 15 May
Transport
ComfortDelgro 14 May
SATS 14 May
Tiger Airways 18 May
Agri
Olam 15 May

China
China Minzhong 14 May
Others
Best World 14 May
Armstrong 15 May
Global Logistics 24 May
Biosensors 29 May

On Friday, Biosensors re-test the support at $1.20 and closed at $1.20 with HIGH volume of 11.34 million shares traded.

During the past 10 bars, there have been 3 white candles and 6 black candles for a net of 3 black candles.  During the past 50 bars, there have been 19 white candles and 24 black candles for a net of 5 black candles.

RSI & MACD are bearish though RSI in oversold region.

Important Resistance of Biosensors: $1.25

Immediate Support of Biosensors: $1.20

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

Bears have been trying to short Biosensors below the critical support with high selling pressure on Friday but failed.

The support at $1.20 is expected to be strong

Do not suggest buying now due to the high selling pressure and bearish trend. Watch for consolidation instead before entry

In last week, STI fell 108 points from the opening of 2991 and close higher at 2883. A black candle sticks with little upper/lower shadow affirms that investors have no qualms in selling the stocks lower.

Key Economics Data report:

In the coming week, Europe may continue to drive the action as markets navigate the politics of Greece and Italian and French debt auctions.

Many strategists see a further decline ahead for the stock market and expect choppiness to continue as the US market is only 5% down.

Technical Analysis on STI

STI index broke the critical support at 2906 in the past week to end the consolidation mode since Feb 2011 and this is a bearish mode.

1) In weekly chart, a black candle sticks with short upper/lower shadow indicates the selling pressure of the market.

2) The weekly trading volume increases as the selling pressure soars on fears.

3) MACD and RSI indicators are bearish as RSI trend downwards.

4) STI is currently supported by the support at 2848.

5) The supported turn resistance at 2906 will be a critical level for the bulls to clear as the breached of this level affirms to the recovery of the market.

Important resistance of STI: 2906 (Daily charts)

Immediate Support of STI: 2848 (Daily charts)

MY tactics: STI has broken the critical support at 2906 and end the consolidation mode. This is bearish signal. We do not advise anyone to buy on pullback now and watch for sign of consolidation first. After 21/May could be a good timing for entry instead.