Singapore stock market continued to be volatile today with most stocks on roller-coaster rides through the day. Traders with a weaker stomach are most likely to be shaked out early in the morning.
Came across Allgreen Properties Limited today and I think the stock is worth a close watch.
Today, the stock tested the long term support at $1.22 again for the third times over the past few weeks and managed to hold above this level. As seen from the chart, as the prices approached the support level for the third time, the MACD failed to form a similar low. This divergence between the price and MACD can be viewed as a bullish divergence. For the time being, the price might consolidate around this level before a more distinct recovery.
The Singapore’s Straits Times Index closes down 10.36 points today. Traded volume was a moderate 817 million shares with 203 counters rises versus 287 falls; 722 counters ended unchanged. Investors are probably taking the cautious side ahead of the US Federal Reserve policy meeting over the next two days. Afterall, the market had enjoyed a brief rebound over the last two weeks that saw most stocks recovered from their six months low after the recent heavy sell down.
One of the small cap counters that saw heavy interest during the rebound is Hengxin Technology Limited, a recent IPO that traded to a high of $0.625 before the collaspe. It hit a low of $0.32 and rebounded off this level. Average traded volume was more than 10 million over the last two weeks. The stock has since recovered to $0.500 yesterday, which was more than the 50% retracement between $0.625 - $0.320. It opened at $0.500 today and closed at $0.475, forming a bearish dark cloud cover candlestick formation.
Many China counters experienced the similar price action too. The direction of the market will probably be clearer after the Federal Reserve policy meeting. We will most likely see another round of sell down if the Federal Reserve hint on further rate hike