Stock Investing and Trading Strategies

Singapore Straits Times Index – 2,557.90 (+31.90)
Volume: 1,115.6 million
Rises/Falls: 392 / 195

Property Sectors

Aided by the heavy buying in the property stocks, the Straits Times Index was up by 31.90 points to close at 2,557.90.

The Property Index broke out of the key resistance at 933 to close the day up 22.77 points at 942.71. A close look at the chart of the Property Index revealed underlying weakness in the direction of the index. As the index rallied from the June’s low to surpass the high achieved in April, MACD indicator failed to confirm the rally as shown by the MACD divergence away from April high. A minor divergence was also observed between now and early September.

If the rally is able to sustain, the next two levels of resistance are likely to be 1120 and 1150 attained in the year 1997! In the case of a failed rally, the support levels are at 933 and 900.

Singapore Straits Times Index – 2,526.00 (+2.11)
Volume: 1,212.2 million
Rises/Falls: 204 / 354

Straits Times Index – Impending Correction?

Singapore Straits Times Index managed to edge up 2.11 points to close at 2,526 today. Keppel Corporation, Venture Corporation and Parkway Holdings accounted for most of the index gain. Most of the index stocks ended the day either lower or flat. Overall, losers outnumbered gainers with 354 losers versus 204 gainers. Again, Heshe alone accounted for about 10 percent of the total trading volume.

The Straits Times Index has rallied to a recent high of 2552.02 from the low of 2277.91 in June, forming series of higher-high and higher-low. However, one point to note is that as the index rallied to recent high, MACD technical indicator failed to confirm the rally. MACD has been trending lower, forming a series of lower tops as the index rallied. This indicates an underlying weakness in the rally, which warned of a possible short-to-intermediate-term change in trend from up to down.

The Straits Times Index is currently near the upward trend line shown by the green line. It is vital to keep a close watch on this upward trend line and the extended trend line. A break below the trend lines could signify the start of a short-to-intermediate-term market correction.

Technorati Tags: Singapore-stocks, Straits-Times-Index, MACD, trend-line

Singapore Straits Times Index: 2,538.26 (+6.84)
Volume: 1,029.6 million
Rises/ Falls: 328 / 204

Sinwa Limited - $0.310 (+0.045)

In a much anticipated move, the US Federal Reserve decided to leave the interest rate unchanged at 5.25%. The market was relief and buying poured in. With the contribution from SIA and SingTel, the Straits Times Index closed up 6.84 point at the end of the day. Singapore stock market and other regional markets were not much affected by the Thailand coup.

One of the stars today is Sinwa Limited. Shares of Sinwa ended the day up 0.045 (17%) after it formed a joint venture company to charter a jack-up rig to an unidentified national oil company in Central America for five years. The contract is worth 109.5 million USD. According to the announcement, the rig will be deployed in the Gulf of Mexico.

Listed since 28 February 2003 on the SESDAQ board of Singapore Exchange, Sinwa Limited main business activities are the marine supply and logistics in the oil and gas industry.

The stock is currently trading near its all time high of $0.320. The strong momentum displayed today is likely to push the stock price pass this critical resistance. With the company now tie up with KS Energy, it is likely to see more interest in shares of Sinwa and trading volume should pick up.

Technorati Tags: Singapore-Straits-Times-Index, Federal-Reserve, resistance, Technical-Analysis