Blue-chip selloff to abate

KEPPEL CORP ($9.56) – Accelerated decline to abate

-         In terms of support, prices are currently testing the year’s low

-         Target of $9.80 was reached a few sessions ago

-         Oversold pressures that have built up should trigger rebound to $9.80

SINGAPORE TELECOMMUNICATIONS ($3.70) – Struggling to stay afloat

-         Prices are in the process of breaking below 200 day moving average

-         Break below $3.70 to $3.73 neckline indicates a target of $3.49

-         Temporary bounce of some 10 to 12 cents should materlialise

CITY DEVELOPMENTS ($9.24) – Oversold pressures limit downside

-         The year’s low is at $8.71 and decline should to able to stop ahead of this level

-         Short-term stochastics is attempting a rebound

-         Moving averages are declining and unlikely to turn up this year

NAM CHEONG (36.5 cents) – Poised to break 200-day

-         Prices appear poised to sustain a break below the 200 day moving average

-         Directional indicators also confirm the downtrend

-         Break below 42 cents indicated a target of 36 cents

-         Any rebound is likely to be temporary with resistance at 38.7 cents

DBS GROUP HOLDINGS ($17.75) – Breaks below 50-day

-         Prices broke support at $18.20

-         Major support appears at $16.80

-         Prices may find initial support at 100 day moving average at $17.54

-         When counter stages its initial rebound, resistance appears at $18.04

SEMBCORP INDUSTRIES ($4.82) – Temporary bounce, further falls ahead

-         Quarterly momentum is likely to continue making new lows for a few sessions

-         Break below neckline at $5.18 indicates a target of $4.18

-         Any rebound is probably temporary with resistance appearing at the breakdown level

(Source: TheEdgeSingapore October 20 2014)