Situational stocks continue recovery

SEMBCORP INDUSTRIES ($3.73) - Challenging 100 day moving average

- Prices testing the neckline of what looks like reverse head and shoulder formation

- Quarterly momentum is rising

- Successful breakout indicates target of $4.48

- In short term prices may pause and consolidate temporarily

SEMBCORP MARINE ($2.53) - Forming base

- Prices are currently in a resistance area

- White candle days have been accompanied by volume expansion

- Quarterly momentum appears set to strengthen

- Successful break above $2.55 indicates initial upside of $2.90 to $3

KEPPEL CORP ($7.16) - Testing top of base

- Prices appear poised to sustain a break above 50 day moving average

- Successful break above $7.25 would indicate target of $8.10

- This indicates potential and is not immediate upside

EZION HOLDINGS (70 cents) - Challenges 50 day moving average

- Counter has lagged recovery of the big caps

- Prices have managed to test the 50 day moving average at 71 cents

- An eventual break above this level would indicate an upside of 88 cents

- Indicators suggest that decline is over and slow recovery is starting

NEPTUNE ORIENT LINES ($1.04) - Poised for a further breakout

- One of the strongest counter in its sector

- Indicators suggest that an uptrend is underway

- Break above $1 provides impetus for prices to test $1.17

- Breakout indicates a target of $1.25

- Support is at 96 cents

WILMAR INTERNATIONAL ($2.82) - Facing resistance

- Directional indicators are turning positive

- Quarterly momentum has no clear trend although short term direction is upwards

- Prices are likely to meet resistance at $3

- Support is at $2.45 to $2.50

(Source: TheEdgeSingapore October 12 2015)