Right timing: Awaiting rebound amid accelerated decline

Right timing: Awaiting rebound amid accelerated decline

By: 
Goola Warden
22/06/18, 10:08 pm

SINGAPORE (June 22): Here are two charts for your technical analysis this week:

STI daiiy (3,356)
The Straits TImes Index fell almost 70 points in the past five sessions after falling 80 points a week earlier. Down momentum is strong, but short-term indicators are becoming increasingly oversold.

Short-term stochastics is at the bottom of its range, and 21-day RSI is at 30, a low level. ADX is at 32, a high level, suggesting that prices are likely to hit an excessively oversold level soon, at around mid-week next week.

Volume was elevated on June 22, but once this abates, the index should be able to stage a temporary bounce. At this stage, it is too eary to tell if the temporary bounce will turn into a relief rally.

The weekly chart shows a gradual downturn by annual momentum, with its own weighted moving average turning down a well. This suggests that a primary downtrend is forming. Support/breakdown was at 3,338, the April low, A break below this level indicates a downside measuring objective of 3,100.

AEM ($1.15) Short-term oversold
Prices regained their 200-day moving average at $1.13 on June 22. Short term stochastics is at the bottom of its range, and 21-day RSI touched a low of 26 before rebounding.

Some short-term stability should set it, with prices attempting to rebound towards $1.26.

Overall, though, the downtrend, which came in force at the end of May may not have run its course. The level to watch is $1.13 with a breakdown indicating a target of $1.

Right timing: Temporary pause as STI consolidates gains

SINGAPORE (Feb 22): The recovery by the Straits Times Index that started towards mid-January is likely to continue despite short term hiccups. Quarterly momentum is in rising mode, the 50- and 100-day moving averages are positively placed, and the index remains above its 200-day moving average. ADX is rising and the DIs are positively placed. Interestingly annual momentum has stabilised and could attempt to recover. Prices could ease as short term stochastics approaches the top end of its range and turns down. This may cause a temporary retreat. Support is at the breakout level of 3,19....
Read More >>

UOB is RHB's top pick when it comes to local banks

SINGAPORE (Feb 22): United Overseas Bank is the top pick for Singapore banks, says RHB Research which believes the share price weakness after the results release offers a good entry point. UOB has also declared a final dividend of 50 cents per share and special dividend of 20 cents per share. FY2018 total dividend of $1.20 gives an attractive yield of 4.6%. Rising 18% y-o-y, UOB’s FY2018 earnings of $4.01 billion came in line with RHB’s forecast of $4.16 billion and consensus’ forecast of $4.05 billion. For FY2019, management has guided for net interest margin (NIM) to be flatti....
Read More >>

Pioneer, Merdeka... Next, a Majulah Generation package?

SINGAPORE (Feb 22): Hot on the heels of a $9 billion Pioneer Generation package announced in Budget 2014, the $8 billion Merdeka Generation package is setting up expectations of similar packages for every generation of ageing Singaporeans. Notably, both are geared towards healthcare and broadly available to an entire generation of Singaporeans. Already, analysts are expecting at least one more package to follow. “I suppose when there is only one dot, one can’t extrapolate, but with two dots you can,” says Tan Ern Ser, a sociologist at the National University of Singapore (NUS). ....
Read More >>