Quality stocks stage tentative rebound

SEMBCORP MARINE ($3.67) - Facing resistance

-          Prices tested the declining 50 day moving average

-          Largest falls could be over but a sustained upmove is weeks if not months away

-          Prices are likely to move sideways

-          Support appears at $3.58

SIA ENGINEERING ($4.60) - Attempting base formation

-          Over medium to longer term, counter may be attempting to form a base formation

-          Neckline likely to be established at $4.65

-          Resistance is at $4.65

-          A breakout is unlikely

SIA ($9.70) - Temporary support established

-          Prices are attempting to hold at current level

-          Since RSI is at its low, downside is likely to be limited

-          Rebound is likely to be limited to $9.80

SATS ($3.03) - Challenging resistance

-          Prices may ease from its current level of $3.02 to $3.05

-          Support is at $3

-          Near term range is likely to be narrow

-          A recovery is unlikely

ST ENGINEERING ($3.63) - Meets resistance

-          A temporary rebound is underway with resistance at $3.65 to $3.68

-          Downtrend is still in force

-          Quarterly momentum has formed  a positive divergence and should eventually lead to a breakout

-          Prices would be able to move above the $3.65 to $3.68 range and test $3.75 level

-          Support is at $3.54

TIGER AIRWAYS HOLDINGS (27 cents) - Endless decline?

-          Prices are in accelerated downtrend

-          Theoretical ex-rights price is around 23 cents and prices may stop their decline only when this level is reached

(Source:  TheEdgeSingapore October 27 2014)