Kim Heng, formerly Kim Heng Offshore and Marine, mindful of having to transition out of oil and gas to save the Earth, had 100% of shareholders voting for a resolution to diversify into the renewable sector, including constructing components for wind farms, at an EGM. The EGM was held on April 23. On May 31, the share price surged to 6.5 cents overnight, from 3.8 cents in the previous session, on May 28, and this surge elicited a query on trading activity from the SGX. Since then, volume and trading continue to rise.

Prices ended at 7.8 cents on June 11, more than double the 3.8 cents the stock was trading at on Apr 23, on the day of the EGM. These moves have caused short term stochastics to surge to the top end of its range. Hence, in the near term, a temporary consolidation and/or retreat could materialise. Support is at 5.4 cents, a level where some congestion has occurred. The new normal for this stock is to trade at higher levels, and the next resistance is at 10.2 cents.

Following the formation of a shooting star on the chart of Enviro-Hub Holdings on June 8, dojis have indeed appeared, and may continue to do so. Immediate support is at the bottom of the small body of the shooting star, at 9.3 cents. In the meantime, short term indicators are facing resistance at the high end of their range. As yet, no negative divergences have materialised. However, the up-momentum has faded, as evidenced by prices opening and closing at 9.6 cents, and a retreat cannot be ruled out.

The much watched Singapore Airlines stock managed to rise above its declining 50-day moving average at $5.08 on June 10. However, the stock formed a modest gravestone doji on June 11, suggesting that traders and investors need to be prepared for adverse trading conditions in the next couple of sessions. Further out, the formation of a minor positive divergence in mid-May suggests some firmness during the northern hemisphere’s summer months. Support is at $5.08, and a break above a minor base at $5 indicates an upside of $5.60.

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The Straits Times Index continues to stuggle somewhat and has inched below its 50-day moving average at 3,169 based on its June 11 close of 3,157.  ADX is down to 11, suggesting that the immediate range remains narrow. On a positive note, the index has managed to stay above 3,150, establishing this as an increasingly relevant support level. As the STI establishes a trading range, 3,178 could be the benchmark to breach for an uptrend to develop.