FTSE Straits Times Index (FTSTI) – Head towards immediate support level

In Mid-November, the FTSTI managed to test the 2,700 points immediate resistance level and rallied to the next resistance level at 2,800 points, climbing to as high as 2803.83 points. However, the market fell steeply in the last two trading days of the month by falling about 70 points or 2.5% to close at 2732.12 points. On a month-to-month basis, the benchmark index was still able to close positively by an increase of 81 points or 3%. Trading volume has slightly declined in the past few months. Investors’ confidence in the market has been weak.


Weekly FTSTI chart as at 30 November 2009 using NextVIEW Advisor

The FTSTI is still in an uptrend and since April this year when the uptrend started, it has been supported by the 60-day moving average. The moving average is currently at 2,685 points and this should be the immediate support level. The pattern from the chart shows that the market has strong support at 2,600 points. The FTSTI is expected to head towards the immediate support level before continuing the trend. There is still a chance for the benchmark index to climb to the uptrend technical target at 3,000 points but this is unlikely going to happen in the next 4 to six months. Immediate resistance level is 2,800 points.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Singapore stock highlight: Neptune Oriental Lines (NOL)

The shipping industry in Singapore may have taken a backlash from the current global economic crisis but this is the industry to watch when the economy recovers and see growth. One of the bigger shipping companies in Singapore, NOL’s share price performance is lagging as compared to other shipping companies and the overall market performance. Nevertheless, its share price has doubled since the low in March. The price trend has moved up steadily with new highs and modest corrections along the way. Its share price has climbed as high as $1.90 before making a correction to the current level at $1.67.

The company net income fell sharply in year 2008 at US$83 million from US$523 in year 2007. Its share price in beginning of year 2008 was around $3.00 (adjusted) and fell to $0.78 in March this year. The share’s highest price was $5.55 on 16 July 2007. Therefore, there is a lot of room for this share price to move upwards as compared to other shares which have recovered more than 50% from the 2007-2008 bear trend. NOL have only recovered about 20%.

The reason why this stock is highlighted is because the price has come near a crucial level. This level acted as important support and resistance in the past four months. In June, this level acts as a resistance and once it was broken in July, it became support in August. This crucial level is $1.60. Since price is near this level, a technical rebound is expected.

Trend is still strong upwards as the short to long term 30 to 90-day moving averages are increasing. The price is in a correction now because it fell below the 30 and 60-day moving averages. However, the price is still above the longer term 90-day average. There is a concern about the current uptrend because the price broke below the uptrend line that existed since March. Technically, when a trend line is broken, the trend is over and a trend reversal is expected. The crucial support level is going to determine whether the uptrend is going to be supported.

The momentum indicators are indicating bearish momentum and this was because of the current correction which is quite substantial. The longer term momentum however is still bullish as the price trend is in convergence with the pivot highs of the momentum indicators that include RSI and MACD. The indicators are still above the middle level on the weekly chart.

There is a high chance that price may rebound at this crucial support level at $1.60. If it breaks below $1.60, the uptrend has failed and may change direction. If the price stays above $1.60 then it may rebound to $1.80 to move back into the uptrend and may even climb to the resistance level at $2.00. Therefore, a low risk buying opportunity exists between $1.60 and $1.65 with a stop loss below $1.60. To overcome price volatility, stop loss should not be lower than the Average True Range (ATR) which currently reads $0.06.


Daily NOL price as at 2 October 2009 using NextVIEW Advisor

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

FTSE Straits Times Index (FTSTI) – Strong resistance at 2,700 points

The market faces heavy resistance when the FTSTI is at 2,700 points level. The market has been testing this level 4 times in the past one month but failed to break above it. The last test on the resistance level was on the 23rd of September and then fell for two days to close at 2,662.82 points on the 25th. It was another yo-yo month for the Singapore equity market which has gone into a bullish trend correction since mid-August. The benchmark index was still able to end positively month to month with an increase of 44 points or 1.7%.


Weekly FTSTI chart as at 25 September 2009 using NextVIEW Advisor

Technical indicators have been neutral for the past two months but are forming a divergence against the index. The momentum indicators on the weekly chart seem to be more bearish. The market may have peaked at 2,700 points. The FTSTI has increased almost 80% from the low of 1,500 points in March. If the index stays between 2,500 and 2,700 points support and resistance levels, it is still in a correction. If the FTSTI breaks above this resistance level, we may expect the index to test the next resistance level at 3,000 points and if market continues to fall and the FTSTI breaks below the support level, the index is expected to fall to the next support level at 2,200 points.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

FTSE Straits Times Index (FTSTI) – Correction is about to end

The Singapore equity market was in a yo-yo swing last month after being bullish for five months. He similar situation happened in the month of June and the market continued its upward rally. The FTSTI traded in a sideway range between 2,521.36 and 2,700.78 points before closing at 2,642.80 on Friday. A month ago, the benchmark index was at 2,659 points. Investors were taking some profits as they are not sure whether the rally can continue. Prices are relatively high or overbought in the short term.


Weekly FTSTI chart as at 28 August 2009 using NextVIEW Advisor

The 20-day Bollinger bands difference is in a level where the current one-month correction is about to end. The momentum indicators are mixed. RSI and Momentum indicators are slightly bullish while the MACD and ADX shows a weakening up trend. Therefore a breakout below or above the immediate support or resistance level will determine the direction of the FTSTI. A break above the resistance level of 2,680 points is likely going to cause the index to rally to the next resistance level at 3,000 points. A break below the 2,520 points support level would likely push the index lower to the next support level at 2,400 points.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Singapore Stock Analysis - Yanlord Land

China's property markets rebound especially in Shanghai may benefit companies like Yanlord Land. Yanlord's 5 month revenue for year 2009 of $5.3 billion yuan is more than the $5 billion yuan registered for the whole of year 2008. Two months ago, the company said that it plans to raise SG$604 million through issue of new shares and convertible bonds to fund acquisition of new development sites, strategic investments and working capital needs.

Yanlord’s share price has increased four-fold from $0.70 in March this year to a high of $2.84 before falling sharply for three consecutive days to close at $2.43 at the end of the first week of August. Yanlord is one of the leading performers in SGX. The price is currently at the 50% retracement level of the bearish trend from October 2007 to October 2008. The high of $2.84 was a Fibonacci retracement level of 61.8%, which is considered as a resistance level.

The uptrend is still intact as the 30, 60 and 90-day moving averages are still increasing. However, the price has started to below the 30-day average. The uptrend is currently in a correction with support level at the 90-day average which is currently at $2.04. There is a strong pivotal support level at $2.15.

Although price of Yanlord is in an uptrend, the momentum indicators are showing signs of weakness in the current up trend. The RSI, MACD and ADX indicators which indicate the strength of a trend is declining from high to high and this means that the uptrend has become weak. With price being overbought at $2.84, the sharp correction to the current price is no surprise. Now that the momentum is weak, $2.84 may be the high for this year, unless the price is strongly supported. At this point of time, this counter may be difficult to get support because investors and traders may shift focus on other under-valued stocks.

The correction is expected to continue and if the price is able to be supported at $2.15, then the uptrend may still be valid but may continue to face strong resistances. A lot of profit can be made at current price even if the shares are bought at $2.00. Therefore, it is best to wait for the price to come around $2.15 and re-look at the indicators before considering buying this counter. Risk is high to buy at current price.


Daily Yanlord chart with volume as at 7 August 2009 using NextVIEW Advisor Professional


The 3-day Average true Range (ATR) indicator has increased to high of $0.16 and this was because of the three consecutive days of sharp fall. Therefore, a stop loss should not be placed higher than $0.16 from the entry price if a trader decides to trade and longer term position trading should be 1.5 times the ATR which is $0.24.

Resistance is obviously at $2.84 and if this can be broken, then we may see price rally to $3.50, but like I have mentioned earlier, the chances of this happening is this year itself is low.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Singapore stock analysis - Yangijiang Shipbuilding

China-based shipbuilder Yangzijiang has been able to deliver the ship vessels as scheduled this year. The company has successfully delivered 11 vessels year-to-date. Another 29 vessels are to be delivered until the end of this year and the company in confident it is able to fulfil the delivery. Total value of vessels delivered so far in 2009 stands at US$445.9 million and order book is currently at US$6.43 billion with delivery schedule stretching out to 2012.

The economic improvement in the region especially China has increased investors’ confidence in buying this company’s shares and the recent analyst’s price upgrades has also helped. In March this year, Yangzijiang’s share price was around $0.37 and its lowest ever price was $0.29 in October 2008. Today, the price is at its 15 months high at $0.975, 163% higher from the low in March. While the benchmark Straits Times Index has already retraced 50% from the October 2007 to October 2008 bear trend, Yangzijiang’s price has only retraced 30%. There is still room for price to go higher.

Moving averages (30, 60 and 90-day moving averages) are in convergence upwards which means that the underlying uptrend is strong. This is further supported by the momentum indicators. The Relative Strength Index (RSI) and Momentum indicators are making new highs showing that the bulls are in control. The Average Directional Index which is increasing shows no sign of weakening bullish momentum. Therefore, based on these indicators, there is a high chance of price going higher.

However, the price has been going up quite steeply and normally a steep upward movement can’t be sustained. The fall on Friday shows how sharp a downward correction can be. The uptrend is a parabola in nature, which can be defined in the parabolic arc line in the chart below. Normally, a steep correction downwards will take place if the parabolic arc is broken. But if it is able to rebound from the arc, we may see another strong rally upwards.


Daily Yangzijiang chart with volume as at 7 August 2009 using NextVIEW Advisor Professional

Price is expected to test the parabolic arc, which is currently at $0.94. When price comes to this level, a rebound may create a buy opportunity for short term traders. A rebound can be detected from indicators like bullish candlesticks reversal patterns. However, if price falls further, in can be a steep one so traders need to be very cautious. The 3-day Average True Range (ATR) currently reads $0.06 and therefore a suitable stop loss for a trader to consider is $0.06 from the buying price.

If the arc is broken, the price may find support at $0.87, the S1 up trend line as plotted in the chart. The upside target for Yangzijiang is $1.20 and this can be achieved as long as the price stays above the S1 up trend line.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

FTSE Straits Times Index (FTSTI) – Uptrend can be sustained

The Singapore market was extremely bullish last month after about a month of consolidation in June especially after breaking above the 2,400 points resistance level. The bulls continue starts to dominate the market in early July and the STI rallied 326 points or 14% in a month to close at 2,659.20 points end of July. The Singapore market is one of the best performing markets in the Asian region last month. The benchmark index has already increased 82% from the low in March this year.


Daily STI chart with volume as at 31 July 2009 using NextVIEW Advisor Professional

Technical indicators turned positive again especially momentum indicators that measures trend strength. The RSI, ADX and Momentum indicators continue to make new highs since early July and this means that the current up trend or rally can be sustained. Therefore, there is a high chance for the STI to climb higher but there is a technical resistance at 2,680 points, based on the 50% Fibonacci retracement level from the end-2007 to early-2009 bear trend. If the STI is able to break above this resistance level, then the next resistance level is at 3,000 points. Support level remains at 2,400 points with a minor support at 2,500 points.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Singapore Stock technical Analysis - Capitaland

Speculations in the property market that it may rise because of recent buying activities. However, the prices of property stocks have been stagnant with a slight bearish movement for the past one month. Property stocks have been on a good bullish rally from March. The FT Real Estate Index jumped more than 80% from the level in March to June. I guess that the prices of properties stocks have gone too far ahead of the fundamentals.

One of the biggest real-estate public–listed companies in Singapore is Capitaland. Capitaland’s share price in March was around $1.90 and it went as high as $4.00 in June. This is more than a 100% increase. The share price, as at 3 July is $3.61. For the past one month, the price has made short-term lower highs and lower lows. Technically this means that the price is in a short-term down trend. This can also be confirmed by the short-term 30-day moving average which has started to decline a few days ago.

In the longer-term time frame, price is still in an up-trend. The 90-day moving average is increasing and is 16% below the current price. The momentum the up-trend is weak. Based on the Relative Strength Index (RSI) indicator which has gone below 50 (the mid level that separates the bulls and bears strength), the bears have started to dominate to market. The MACD indicator which started to show bearish momentum since early June continues to show bearish strength.

However, there is no strong selling pressure seen in the past one month as trading volume has been declining for the past one month. The price movement for the past one month has formed a correction pattern on the chart called the “wedge”. This is a trend continuation pattern. These indicators suggest that the price is more likely to be in a correction than a selling pressure. The trend continuation depends on the completion of the wedge pattern.

At current price level, the correction is not over until price moves to $3.20. If it does go below $3.20 then selling pressure may begin. So, there is still some room for price to go lower in the short term. During this correction, the up-trend may start to continue its journey if it breaks the resistance level of the wedge pattern which is currently at $3.70. Therefore, the price of Capitaland is still in a corrective mode if it stays between $3.20 and $3.70.

If the price continues its trend, the technical price target is $4.60 with a resistance at $4.10. Recently, many analysts have upgraded the target price for Capitaland from below $3.00 to between $4.00 and $4.60. Immediate support level is of course at the wedge support level at 3.20 and further below is at $3.00. The weekly Average True Range (ATR) for the past three weeks is $0.32 or 9% from current price. A stop loss should not be lesser than this ATR to give the price enough room to move.


Daily Capitaland chart as at 3 July 2009 using NextVIEW Advisor Professional



Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Singapore STI : Weak Uptrend

Technical resistance was at 2,400 points as mentioned in my previous article and the FTSI attempted to test this level a few times early June but failed to close above it. The FTSTI went as high as 2,424.52 points and closed at 2,317.95 points end June. The benchmark index monthly performance was the weakest in three months with only an increase of 3.5%. The monthly performance last month was an increase of 20%. Last month, technical indicators were already showing weakening momentum.


Weekly FTSTI chart with volume as at 26 June 2009 using NextVIEW Advisor Professional


Indicators like RSI, MACD, ADX and Momentum are diverging from the FTSTI last month. This means that the current up trend is weak and there is a low chance that the market can go higher. Resistance level remains at 2,400 points but if the index is able to break and stay above this level, then the next resistance level is at 2,680 points. The drastic change in momentum with strong volume early June shows strong resistance in the market. Market confidence started to falter with a declining trading volume. The market is waiting for cues to take action. With the current indications, the FTSTI is more likely going to pull back to the support level at 2,000 points.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Technical Analysis of Abterra Limited (Abterra) - SGX

Many stocks below ten cents are traded in very high trading volume in the past few weeks as efforts are being put on these stocks that are currently lagging behind the blue chips. One of them is Abterra limited (Abterra).

Abterra is an investment holding company that primarily trades in iron ore, cotton, coal, chemical, steel and bathroom products. The company also engages in mining resource properties, as well as in the production, transmission, distribution, and sale of electricity. Abterra was formerly known as Hua Kok International Limited and changed its current name in 2005. In addition, it also has operations in China, Australia, India, and Indonesia

The price of Abterra was trading in a range between $0.015 and $0.025 from mid-November 2008 to mid April 2009 with very thin trading volume. Volume starts to increase in May and price shot up as high as $0.085 on the 11th of May 2009. A correction ensued and price is currently at $0.07.

The price trend changed from a down trend to an uptrend when price breaks away from the $0.015 and $0.025 trading range in April and traded around $0.030. The short to long term moving averages started to reverse during this period providing a good opportunity to buy. Currently at $0.070, price is still above the averages and therefore still in an uptrend with relatively high volume. It has been appearing in the SGX top volume chart for the past few days. However, price moved into a sideway correction since the high of $0.085.

The current price momentum is neither bullish nor bearish. The Relative Strength Index (RSI) and Momentum indicators are currently at the midpoint. However, the MACD indicator is already showing bearish momentum on the current trend since 3 weeks ago and there is no indication of it turning bullish yet. Therefore, the uptrend is weak and the next direction should be determined by whether the price breaks below the support level (bearish) or above the resistance level (bullish).

Price is currently at the 38.2% Fibonacci retracement level from the long term bear trend since early 2008 when price was at $0.15. It tested the 50% retracement level at $0.085 but failed to continue. Generally, the Singapore market based on the FT Straits Times Index is at the 38.2% retracement level. There is a low chance of price climbing higher unless the FTSTI climbs to the 50% retracement level at 2,680 points.

Watch for the breakout of the support and resistance level for this particular stock. Traders should run away if price breaks below the support level of $0.06 and continue to hold or buy if the price breaks above the resistance level of $0.07 and if does break above the resistance level, it may start to test $0.085 again and probably to $0.10. The next support level is at $0.05.


Daily Abterra chart as at 5 June 2009 using NextVIEW Advisor Professional


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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Technical Analysis of Midas Holdings Limited (Midas) - SGX

The price of Midas in the Singapore Stock Exchange (SGX) has performed very well in the past 2 months. It has increased more than 70 percent to the current price of $0.675 with a well-established up trend. It has been one of the most active stocks traded on SGX recently. Now that it creates strong market interest, is there a chance of this share price going higher?

Midas Holdings Ltd. (Midas) engages in the manufacture and sales of aluminium alloy products and polyethylene pipes for the infrastructure sector including rail transportation in China. Midas Holdings Limited was incorporated in 2000 and is based in Singapore and was listed on the SGX on the 23rd of February 2004.

Recently in May, analysts from a few broker firms raises target price for MIDAS. DBS Vickers raised the target price from $0.60 to $0.82. Kim Eng also raised its target to $0.82 from $0.62. However, both CIMB and OCBC cut recommendation from buy to hold with a target of $0.70 and $0.64 respectively. In April, Credit Suisse raises target price to $0.75. Based on these analyses, there is a strong fundamental factor for this counter.

Price of Midas is currently in an uptrend as the short to long term 30- to 90- day moving average is increasing at a steady pace. It is currently well above the moving averages. The trading range of the uptrend in the price of Midas can be established using the linear regression trend line as displayed in the chart below. The current price is just below the top line of the regression channel, which normally acts as a resistance level.


The uptrend is supported by a steady bullish momentum. The Relative Strength Index (RSI), Momentum and MACD indicators are in convergence with the price peaks and troughs. This means that there is a high chance of price creating new highs. Compared to the general performance of the market, the stock price for Midas is still a laggard. The STI has currently retraced to about 38% from the major bear trend since October 2007, while the price of Midas has only retraced to 28%. The 38% retracement for Midas is $0.92. Therefore there is a room for price to go higher.

There is a strong resistance at $0.715 and if the price is able to break above this level, then the probability of price going higher to $0.92 would be high but if it is unable to break above the resistance it may correct downwards as the price is currently at the top level of the uptrend channel. Support level is $0.60 and if price goes below this level, it may start to go even lower to the lower line of the uptrend channel at $0.45.


Daily Midas chart as at 5 June 2009 using NextVIEW Advisor Professional

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Singapore FTSTI currently at resistance level

Market sentiment and confidence in Singapore seems to be getting even stronger by breaking the 2,000 points resistance level and closing at a 7-month high. The benchmark FTSTI closed at 2,329.08 points at the end of May. The index has climbed 56.8 percent from the low in March. Market continues to be bullish despite weaker technical indications. Investors are responding to recent economic developments both locally and internationally. Total manufacturing output of Singapore in April rose 24.7 percent on month but still lower year-on-year.


Weekly FTSTI chart as at 5 June 2009 using NextVIEW Advisor. Click on chart for larger view.

The benchmark index is currently at the 38.2 percent Fibonacci retracement level from the longer term bearish trend since October 2007 which is 2,400 points. There were no major correction from the current bullish trend and the market is climbing exponentially. The momentum indicators are still in divergence which means weaker up trend but there is a high change of the index testing the Fibonacci retracement level above. There has to be more positive catalysts to push the market beyond this level. If the market rallies further, it can only find resistance at 2,700 points. Support level is currently at the previous resistance level at 2,000 points.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Singapore STI: Likely to test next resistance level at 2,400 points

Market sentiment and confidence in Singapore seems to be getting even stronger by breaking the 2,000 points resistance level and closing at a 7-month high. The benchmark FTSTI closed at 2,329.08 points at the end of May. The index has climbed 56.8 percent from the low in March. Market continues to be bullish despite weaker technical indications. Investors are responding to recent economic developments both locally and internationally. Total manufacturing output of Singapore in April rose 24.7 percent on month.

The next resistance the benchmark index would most likely be at 2,400 points, the 38.2 percent Fibonacci retracement level from the longer term bearish trend since October 2007. There were no major correction from the current bullish trend and the market is climbing exponentially. The momentum indicators are still in divergence which means weaker up trend but there is a high change of the index testing the Fibonacci retracement level above. There has to be more positive catalysts to push the market beyond this level. Support level is currently at the previous resistance level at 2,000 points.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

FTSE Straits Times Index (FTSTI) – Further downwards correction

The FTSI was bullish in the first three weeks of last month and started to correct last week. The FTSI went as high as 1,947.30 points last week, near the 2,000 points resistance level from the double bottom chart pattern formation, before settling at 1,818.61 points today, after falling 34.24 points today. The FTSTI was up 107 points or 6 percent on month. The bullish factor was the better-than-expected financial and economic in the US, Singapore’s largest trading partner. There is still a concern over the sustainability of the economic improvement.


Daily FTSTI chart as at 27 April 2009 using NextVIEW Advisor. Click on chart for larger view.

The longer term moving averages (60 and 90 days moving average) have started to increase slightly last month indicating a bullish trend. There is a divergence between the momentum indicators and the FTSTI and this means that the uptrend is getting weaker. The averages are currently between 1,700 and 1,750 points. Therefore at 1,818.61 points, the FTSTI is still considered overbought expected to correct further downwards towards this range level. If price breaks above the resistance level at 1,950 points, then we may expect the FTSTI to continue the up trend.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Singapore Market: Strong bullish momentum

The FTSTI rebounded strongly a month ago when the low was at 1455.47 points. It is currently at 1,820.87 points, a three months high and 25% from the low in March. Positive developments in the US have uplifted some investors’ confidence. The technical rebound was long overdue as the market kept on falling since the beginning of the year. The FTSTI is up 292.36 points or 19 per cent on-month. Market looks like it is bottoming-out as a double-bottom chart pattern is currently forming. The double bottom formation is a bullish reversal pattern and will only be confirmed if the index breaks above the neckline at 2,000 points.


Weekly FTSTI chart as at 3 April 2009 using NextVIEW Advisor. Click on chart for larger view.

The FTSTI is now above the longer term 90-day moving average. It needs to stay above this moving average to turn the current long term trend to bullish. The momentum indicators like RSI and MACD indicates strong bullish strength. However, the Stochastic indicator is currently heavily oversold and the uncertain movement today with strong volume indicates that the index may start to pullback. Therefore expect market to correct downwards in the earlier part of this month before continuing its up trend to test the 2,000 points resistance.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Stock Market Indices Analysis and Updates

US Dow Jones Industrial Average (6,763.29): I have recently comment that the US is heading towards 6,000 points. Click here to read the analysis. In the longer term, it may even go as low as 5,000 points.

Kuala Lumpur Composite Index (868.74) I have made many comments on this market where I live in. It has a long term target of 500 to 550 points. For now, my guess is that the KLCI may test 800. Click here for the analysis.

Singapore FT Straits Times Index (1,528.51): In my previous article on 2 February, I have mentioned that the STI is heading towards 1,600 points. Now that it is already there, I need to analyze further. The STI may start to test the 1,470 points low. The FTSTI has resumed its down trend as the short term 30 day average which was up in the past 2 months has started to decline. The short to long term averages are declining now. The momentum indicators like RSI have declined below the 50 level. The benchmark index is set to test the 1473.77 points low which is a five and a half years low. It may also even test the 10 years low at 1,200 points if there are no changes in the current economic and financial crisis.



Hong Kong Hang Seng Index (12,033.88): My last article was on 20 January 2009 and mentioned that the HSI has a technical target of 8,800 points. The short term 30-day moving average has also declined since and signaled a continuation in the long term down trend. Despite an increasing bullish momentum as indicated by the RSI indicator, is still can’t past through the 50% mark. With weak bullish support and weakening fundamental data, the HSI is expected to continue to fall further to the next support level at 10,600 points.

Japan Nikkei 225 (7,229.72): My last analysis for this market was on 19 January 2009. I have mentioned that a break below the crucial support level may send the Nikkei to a technical target of 5,500 points. Technical indicators have started to show bearish momentum from neutral. The crucial support level is 7,000 points, which is where the index is heading now. A break below this level means that the index has made a new 26-year low.

Thailand SET Index (413.09): My last analysis was on 20 January 2009. I mentioned that the SETI is expected to move sdeways and if the SETI breaks below the support line of 380, the down trend may resume to test the next support level at 320 points. The SETI managed to hold between the trading range mentioned in my last article but a strong momentum downwards has just started after heavy sell down in the US and Europe market.

Vietnam NV Index (241.46): The VNI is currently at 4 years low. My last article was on January 14 where I mentioned that the VNI is in a weak down trend. The support at 284 points wasn't able to hold the selling pressure and price continues to dip. Next Support level is at 220 points and if still this support level can't hold we are looking at the support level at 130, which is is the lowest since October 2000.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Come and visit Benny Lee at ATIC Kuala Lumpur on the 14th and 15th of March 2009

SINGAPORE: SINGTEL - NO SIGNS OF PRICE MOVING INTO A DIRECTION

The price of Singtel in the stock market fell 8.3% from $2.76 on the 29th of January to the current price of $2.53. The price of Singtel has been trading in a range between $2.30 and $2.80 since November 2008. In early 2008, the share price was trading between $3.60 to $4.00.

Technically, the price of Singtel is still down in the long term. Its long term 90-day moving average is still declining and the price is below it. It tested this average on the 29th of January but failed to stay above it. The short term averages has started to move sideways indicating a correction. Therefore Singtel’s share price is currently in a down trend correction. The 90-day average price is currently at $2.60.

The strength of bulls and bears in Singtel is almost equal. The Relative Strength Index (RSI) indicator reading has been around the mid-level of 50 since December 2008. The weekly MACD Histogram has shown sign of weakness in the current momentum. The Histogram has started to decline after 14 weeks of increase. Volume remains firm in the past weeks with about 23 million shares traded daily. However, it is relatively lower than in early 2008 where the average shares traded daily was at about 30 million shares.

With weak momentum and no signs of price moving into a direction, trading within the support and resistance levels is preferable. Since the price is currently in the middle of the 3 months support and resistance trading range and the momentum is weak, the price is expected to test the support level which is at $2.30. If the support of $2.30 is broken, we may see price of Singtel decline further to test the next support level at $2.00. If it holds above $2.30, then we may expect price to rebound to test the resistance level at $2.70.


Daily ST ENGG chart as at 6 February 2009 using NextVIEW Advisor. Click on chart for larger view.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

SINGAPORE: ST ENGG MAY PICK UP IF PRICE MAINTAINS ABOVE $2.20

SINGAPORE TECHNOLOGIES ENGINEERING LTD. (ST ENGG) is a global, integrated, engineering group with capabilities spanning the aerospace, electronics, marine, and land systems sectors. With more than 19,000 personnel in 42 cities around the world, it serves many of the world's leading commercial enterprises and defence forces. Through its four strategic business areas (SBAs) in the aerospace, electronics, marine, and land systems sectors, it delivers essential, comprehensive support and services around the clock.

Its share price is steady above $2.00 as it was supported with a series of book orders in the fourth quarter of 2008. The recent one was a GBP150 million contract from the U.K. Ministry of Defence to provide it with military vehicles. It may not impact the share price directly but is definitely helpful to support the price from falling in a bearish market.

Analysts have been making buy calls for ST Engg since the beginning of the year. On 16 January, UOB KayHian upgrades ST Engg to Buy from Hold, raises target price to S$2.83 from S$2.40 after assigning higher P/E of 16.5X vs 14.5X previously. On 5 January, Deutsche Bank reiterates Buy call with S$3.30 target price after recent string of contract wins and DBS Vickers upgrades to buy from hold with a price target of $2.80. Just before the new year, Nomura upgrades to buy from Neutral with a target price of $2.83 citing an attractive 7% yield and stable earnings growth

The price of ST Engg has been in the down trend since last year when price was around $3.40. It fell to S$2.00 in October and has found support. Since then, the price has been in a correction with a trading range between $2.00 and $2.58. The price is currently at $2.42. There is a strong resistance at $2.58. Price has tested this level for three times since November last year and unable to break it.

A break above this $2.58 resistance level would cause the price to rally with a price objective of $3.10 based on the triangle pattern formed in the current correction period. However, it may take great investor confidence to cause the price to rally and that seems to be lacking in the current market situation. Momentum readings from the Relative Strength Index (RSI) and Momentum indicators are generally weak and this means that there is no strength in any (bull or bear) direction.


Daily ST ENGG chart as at 6 February 2009 using NextVIEW Advisor. Click on chart for larger view.

With weak price momentum, expect the price of ST Engg to continue to trade within the same trading range in the near term. Low risk entry price is between $2.20 and $2.30. The bullish momentum should pick up if the price stays above $2.20. Let’s continue to watch this counter and see if it is able to break above the 2.58 resistance and if it does happen, then we can expect a rally.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Singapore STI heading towards 1,600 points

The Singapore FTSE Straits Times Index continues to trade sideways with a downward bias. The FTSTI is at about the same level a month ago with a volatile trading range between 1,677 and 1,960 points. It was not able to rebound as expected but instead broke the 1,700 points support level. Therefore a down trend continuation is not under way. Investors are being very cautious with higher unemployment rate and weak financial results.


Weekly FTSTI chart as at 29 January 2008 using NextVIEW Advisor. Click on chart to view enlarged chart.

The short and mid term 30 and 60 day moving averages remain flat and this means that the intermediate trend is sideways. However, the long term trend is still down with the 90 day moving average declining with the FTSTI still below it. The FTSTI is expected to continue the long term down trend when it broke the support level of the wedge pattern (S1) at 1,780 points on the chart. It looks like the STI is heading towards the next support level at 1,600 points.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

SINGAPORE: REBOUND EXPECTED

In my previous analysis on the 27th December 2008, I wrote that there is strength in the Singapore Straits Times Index (STI) with an upper resistance at 1,900 points. The STI went as high as 1,959.95 points on the 7th of January 2009 before descending to 1,776.25 points on the 13th of January. The STI is now on the short term up trend line support level.

The STI is expected to rebound from this trend line support level and test the 1,900 points resistance level again. With the strong bullish momentum indication from the RSI, there is a high chance that the STI may be able to go beyond the resistance level and perhaps test the longer term 90 day-moving average is currently at 1,977.

However, if the STI breaks below the 1,700 points support level, then we may expect the STI continue its down trend. The support level is the support level of a correction pattern (triangle) in the long term down trend.


Daily FTSTI chart as at 12.40 PM (+8.00GMT), 13 January 2008 using NextVIEW Advisor. Click on chart to view enlarged chart.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

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