Accelerated upmoves of situational stocks not sustainable

KEPPEL TELECOMMUNICATIONS & TRANSPORTATION ($1.69) - May attempt breakout

-  Accelerated upmove may push higher as there is plenty of punter interest

-  Prices should move above $1.72 indicating target of $1.92

-  Breakdown level is at $1.61 below which the upside is no longer valid

SUTL ENTERPRISE (50.5 cents) - Attempting breakout of base

- Has been in a sideways base formation for past 12 months

- Quarterly momentum has turned up after a multi-month positive divergence

- Any retreat should find support above 45 cents

- Upside from breakout is at 65 cents

NEW SILKROUTES GROUP (62.5 cents) - Overextended accelerated upclimb

- Prices have doubled within a month and look significantly overstretched

- Resistance approaches at 85 cents

- Support is at 56 cents below which prices could fall swiftly

BEST WORLD INTERNATIONAL ($1.855) - Overstretched high is unsustainable

- As prices rise, volume is contracting which suggests a lack of genuine buying demand

- Prices are being pushed higher despite a lack of buying demand

- Upside is probably limited to $2

- Support is at $1.80

- Breakdown points to a fall to $1.55

TPV TECHNOLOGY (30 cents) - Set to rebound

- Prices have managed to move above its 100 day moving average and thrice tested resistance at 26 cents

- Prices could move higher despite absence of genuine buying demand

- Resistance appears next at 38 cents

ACROMEC (82.5 cents) - Continued upclimb

- Prices have formed a clear uptrend since the counter's IPO

-  Volume has been shrinking as prices have climbed

- Directional movement is rising, supporting the upclimb

- Next upside is at 93 cents

- Support appears at 81 cents and then 75 cents below which uptrend will be breached

(Source:  TheEdgeSingapore 29 Aug 2016)

Which offshore stocks will survive the deluge?

KEPPEL CORP ($5.27) - Breaks down

- Short term stochastics should trigger a temporary rebound

- Resistance appears at $5.50

- Directional movement indicators have taken a negative turn

- Initial support is at $5 and $4.50

SEMBCORP MARINE ($1.335) - Oversold pressures build

- Short term stochastics represent an extreme oversold conditions

- There should be a temporary rebound off $1.31

- Rebound is likely to meet resistance at $1.50 to $1.54 range

MERMAID MARITIME (10.2 cents) - Poised for breakdown

- Prices have been trading within a narrow range

- Prices appear poised for breakdown

- Breakdown would indicate target of 7 cents

SEMBCORP INDUSTRIES ($2.72) - Breaks below support

- Prices are in process of breaking below sideway range

- Breakdown occurred at $2.91

- Decline has some way to go and initial support appears at $2.54

- January low of $2.23 should be able to stop the decline and trigger a rebound

PACC OFFSHORE SERVICES HOLDINGS (31.5 cents) - Falls below support

- Prices have just fallen below support at 34 cents

- Breakdown indicates downside of 27 to 28 cents

- Short term stochastics should bottom and may trigger a temporary rebound with resistance at 33.5 cents

MTQ HOLDINGS (43 cents) - Poised for a breakdown

- Quarterly momentum appears more resilient than the sector

- Prices are at twice tested support level at 43 cents

- Breakdown looks increasingly likely

- If prices break 43 cents, they indicate a target of 26 cents

- Any rebound is likely to be mild with resistance at 45 cents

(Source:  TheEdgeSingapore August 8 2016)

Indicators turn positive for index components

DBS GROUP HOLDINGS ($16.30) - Moving averages turn positive

- Longer term chart looks positive

- Following break above $15.60 and $16, counter has confirmed a break above a major base formation

- Support appears at $16

- Directional movement should support the uptrend

OVERSEA-CHINESE BANKING CORP ($8.98) - Moving averages strengthen

- Prices are testing a resistance area

- A breakout is a matter of time

- Any retreat should be shallow with support at $8.75

- Successful break above $9 indicate a target of $11

UNITED OVERSEAS BANK ($19) - Attempting to strengthen

- Counter has slightly less relative strength than the sector

- Prices are near a resistance area at $19 to $19.17

- Prices may ease towards $18.50

- Successful breakout provides objective of $20.70

SINGAPORE TELECOMMUNICATIONS ($4.23) - Upmove pauses

-  Immediate support is at $4.20

- If prices can hold, they have a better chance of forming a bull flag

- For this to materialise,  prices have to break above $4.32 in the next two session

- A successful break above $4.32 indicates a target of $4.67

KEPPEL CORP ($5.58) - Challenging breakout point

- Prices have been largely trading within a range since May

- Prices are likely to remain entrenched in a narrow range

- The level to note is when it moves above its 200 day moving average

- Breakout would provide a measuring objective of $6.30 initially and $7 subsequently

WILMAR INTERNATIONAL ($3.11) - Moving averages turn negative

- Before the price breakdown, the 50 and 100 day moving averages had already turned negative

- If break below $3.17 level is sustained, a measuring objective of $2.59 is indicated

- Downside would be invalidated if prices regain the $3.17 level

(Source:  TheEdgeSingapore July 25 2016)