Local blue chips build base formations as Hong Kong hotels surge

SINGAPORE POST ($1.305) - Forming a base

- Signs are emerging that prices have lost downside momentum

- During the next two weeks, prices may continue to build a base

- Immediate resistance is at $1.32

- Support is at $1.23

- Break above $1.32 would provide impetus to test $1.44

SINGAPORE TELECOMMUNICATIONS ($3.77) - Locked in sideways range

- Prices are fluctuating around the 50 day moving average

- ADX suggests that prices are likely to remain rangebound

- Prices need to break above $3.84 to form an uptrend

SINGAPORE PRESS HOLDINGS ($3.20) - Stabilises at oversold lows

- Clear downtrend for the past 18 months may be approaching a low point

- The immediate trend is likely to be sideways

- Price resistance appears at $3.27

- Support has been established at $3.13

SINGAPORE EXCHANGE ($7.40) - Could strengthen

- Prices have been moving within what could turn out to be a minor base

- Breakout level for price is at $7.47

- Successful breakout indicates an upside of $7.70

- Support has been established at $7.29

SHANGRI-LA ASIA (HK$ 13.34) - Uptrend to continue

- Prices are on an extended uptrend that has yet to start accelerating

- Prices broke out of HK$11.50 setting a target of HK$17

- Support should be kept at HK$12.80

MANDARIN ORIENTAL INTERNATIONAL (US$2.04) - May run out of steam

- There is a pause in the accelerated upmove

- Immediate upside is probably limited

- If prices are forming a second bull flag, they need to break out of US$2.04 immediately

- Break below US$2.01 would invalidate the bull flag, in which event support appears at US$1.80

(Source:  TheEdgeSingapore June 26 2017)

S-chips under short-term pressure

YANGZIJIANG SHIPBUILDING HOLDINGS ($1.22) - Momentum falls

- Quarterly momentum has fallen sharply

- 50 day moving average has been acting as support line since January

- Resistance is at $1.26

SINO GRANDNESS FOOD INDUSTRY GROUP (23 CENTS) - Could drift lower

- Prices appear to be in multi-month base formation

- Medium indicators are weak and DIs are negatively placed

- Support is at 21 cents

- Resistance appears at 24 cents

CHINA SUNSINE CHEMICAL HOLDINGS (79.5 CENTS) - Forms ascending triangle

- The uptrend is intact

- Chart pattern looks like an ascending right triangle

- Support should be kept at rising 50 day moving average line at 73 cents

CHINA AVIATION OIL CORP ($1.65) - Uptrend stalls

- Prices continue to hold above its moving average

- Quarterly momentum has flattened

- Resistance has been established at $1.73 level

- The 50 day moving average has acted as support since start of the year and is now at $1.64

- Breakdown level is at $1.58

CITIC ENVIROTECH (75.5 CENTS) - Sideways to lower

- Earlier break above 82 cents have failed and prices have drifted down

- Indicators suggest prices are likely to drift lower gradually

- Immediate downside is likely to be limited to about 70 cents

- Resistance is at 79 cents

YANLORD LAND GROUP ($1.89) - Momentum turns down

- Momentum appears to have broken below support

- Prices are still holding above its 50 day moving average

- Resistance has been established at $1.98

- Break below $1.87 would lead to price decline towards $1.70

(Source:  TheEdgeSingapore June 12 2017)

How low can resource stocks go?

NOBLE GROUP (37 cents) – Selling subsides

- Prices are at all-time lows

- Stock is at extreme oversold level

- Trend remains downwards but the time for rebound is high

- 30.5 cents is likely to be established as support

ALLIANCE MINERAL ASSETS (35.5 cents) – Buying dries up

- Quarterly momentum is now testing a support level

- Buying demand has evaporated

- Immediate support is at the rising 50 day moving average at 30 cents

- When breached the next support is at 22 cents

- Resistance is now at 38 cents

CNMC GOLDMINE HOLDINGS (26 cents) – Downtrend in force

- A downtrend is underway

- Downside likely to be at 21 cents

- Recovery will take months as prices need to form a base first

- At present downtrend looks set to persist

GOLDEN ENERGY AND RESOURCES (42.5 cents) – Drifting lower

- Chart pattern is weak

- There are signs that prices could start moving into a sideways range

- Immediate support is at 40 cents

- Resistance has been established at 45 cents

GEO ENERGY RESOURCES (25 cents) – Forming top reversal pattern

- 200 day moving average is providing support for the consolidation phase

- Chart pattern is starting to look like a head and shoulder top formation

- Support stays at 23 cents

- Immediate resistance is at 28 cents

WILMAR INTERNATIONAL ($3.54) – Under selling pressure

- Prices are under some selling pressure

- Support is at $3.50

- A break below $3.50 would indicate a downside objective

- Resistance has been established at $3.67

(Source:  TheEdgeSingapore June 5 2017)