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)
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