Right timing: STI could break out; Wilmar to strengthen; Olam heading higher

Right timing: STI could break out; Wilmar to strengthen; Olam heading higher

By: 
Goola Warden
25/01/19, 11:57 pm

SINGAPORE (Jan 25): The Straits Times Index looks set to challenge and perhaps break out above resistance and its 200-day moving average at 3,245. Volume has expanded, and quarterly momentum looks able to move up into a vertical rise.

The 50- and 100-day moving averages are poised for a positive cross, which should confirm the ability of the index to break out. The stronger medium term indicators should be able to support further advances for the STI. This is despite the downturn of short term stochastics at the top end of its range, and the faltering of 21-day RSI. The earlier break above 3,190 indicates a target for 3,420. Support and the fail safe level is at 3.190 below which the upside is no longer valid.

Wilmar International set to strenghten
Prices have just moved above the several-times tested resistance at $3.26. The breakout has been confirmed by the positive cross and upturn of the 50-, 100- and 200-day moving averages.

Quarterly momentum has also broken out. Volume has expanded, but will need to rise further if the breakout is to be successful. The major negative signal is the shooting star like formation on the candlestick chart. The upside could be as high as $3.60 if prices are able to stay above $3.26 for the next three sessions.

Olam should head higher after breakout
Although prices have risen by just 1 cent from Jan 18, at the current price of $1.82, the stock has been able to move above its 100-day moving average at $1.79.

Quarterly momentum appears poised to break out of its resistance at its equilibrium line. The break above $1.77 indicates a target o $2.00 which remains valid.

US sanctions on Huawei could backfire

SINGAPORE (May 27): It was only to have been expected. After nearly a year of pressure that failed to stop Huawei Technologies Co’s expansion -- especially in the rollout of the next generation 5G wireless network globally -- in its tracks, US President Donald Trump signed an executive order effectively barring American firms from doing business with the Chinese telecommunications equipment company. The inclusion of Huawei on the US Department of Commerce’s Bureau of Industry and Security’s (BIS) Entity List means that companies would need to apply for a waiver to supply goods with 25....
Read More >>

Annica chairman Ong quits just as $33 mil goes missing at his law firm JLC

SINGAPORE (May 27): Jeffrey Ong, managing partner of law firm JLC Advisors, may have given instructions to pay out a sum of $33.2 million held in escrow by his firm for a client, Allied Technologies. According to Allied’s statement filed with Singapore Exchange on May 23, the payment may have been “unauthorised”, citing a letter it received from JLC on May 22. Allied’s statement did not specify who the payment was made to. Ong also abruptly resigned as non-executive chairman of Annica Holdings on May 20. In a May 22 filing with SGX, Annica CEO Sandra Liz Hon Ai Ling said Ong resigne....
Read More >>

SGX RegCo sees targeted approach in enforcement, more powerful market discipline

SINGAPORE (May 27): Tan Boon Gin, CEO of stock exchange regulator Singapore Exchange Regulation, says the market can expect a stronger regulatory presence. “You will see a series of enforcement cases coming up quite soon,” he tells The Edge Singapore. Tan’s assertion comes amid significant changes in the market as sentiment remains lacklustre and investors’ expectations change. The local stock market has gone through significant upheaval, not least because of the penny stock crash in 2013 that wiped out some $8 billion in value from the market. The event dented investor sentiment, a....
Read More >>