Tag Archives: SembMar

Blue-chips in trouble

Evening all,

I have some words on the local market for today. After a fall starting in September, the STI has regained lost ground, and closed at 3350 on Friday. Two periods of rejection at this region in recent history mean that the STI is testing resistance now. When I look specifically at charts of the component stocks, I see more bearish-looking charts than bullish ones; and this was what I thought a few months back too – which makes me wonder how the STI managed to follow international indices higher. I want to share a few counters that have confirmed their mid-term sluggishness.

This is SIA Engineering – S59.SI. In my last post on this counter https://technicalanalysistalk.wordpress.com/2014/04/10/sia-engg-cruising-at-all-time-high/ – I mentioned my disappointment at SIA Engg failing at an all-time high, and prompted the chance of a downtrend emerging from a consolidation. SIA Engg traded in quite a volatile fashion from August to November before a decisive break down from the range (in black) in the middle of November. The sell-off put SIA Engg 10% below levels seen a few months back. Significantly, SIA Engg is now in a clear downtrend.

sia engg

Next, SembCorp Marine – S51.SI. In my last post on SembMar https://technicalanalysistalk.wordpress.com/2014/02/18/sembmarine-looking-bearish/ – I identified a huge descending triangle. True to theory, SembMar continued downwards. Based on the height of the pattern, SembMar is reaching its target. Incidentally, the downward target from the triangle is where a major low is: $3.10 region.

sem

Finally, ST Engg – S63.SI.

After coming out of a triangle in November of last year, ST Engg went range-bound for almost a year. In August of this year, ST Engg started sliding even lower. A sudden spike sent ST Engg to the 200-day MA but rejection kept the general downtrend intact. The recent sell-off is with heavy volume. The picture looks quite similar to SembMar’s. I see downtrends confirmed in these and other counters.

st

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

SembMarine looking bearish

Evening one and all,

While browsing through my workstation, I briefly see many charts of local counters that look bearish. I reiterate my general bearish stance on most first-tier counters. The two weeks or so of trading have seen markets pushing higher but it looks more like a retracement from selling pressure to me. Property stocks were not left behind as they rallied a little. The more charts I look at, the more tempted I am to pull the trigger on the short side. I feel a little strange, to be honest, since the general mood I get from the media is not that bearish; so, I swiped out charts of international indices. True enough, the picture is not bad at all for stock indices of the western world – in fact, they look as healthy as ever. So, for whatever reasons there may be out there, the local bourse is not taking cue from global indices.

This is Sembmarine, S51.SI. After recovering from the US Debt downgrade crisis in 2011, Sembmarine traded with quite a lot of volatility. The price swings, in 2012, only managed lower highs while support was clear at the $4.20 region. From the start of 2012 until the start of this year, Sembmarine formed a very large descending triangle. A sharp drop in January of this year signalled a downward breakout from the huge triangle. Overall, the chart of Sembmarine looks very bearish. I will be looking at short set-ups based on the general downtrend and large pattern.

s51

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.