Wednesday, January 23, 2013

Large Caps Gain Steam - SGX, Semb Corp

[Previous post: Mixed Fortunes of Oil & Gas - Ezra, Swissco]

Large Caps Gain Steam

1. SGX (financial services)
SGX 2Q profit grew to $76 million on the back of increased daily average traded volume. This 16.7% increase in quarter profit reflects the resilience and rebound of Singapore's key market place and the work SGX has been putting into attracting more securities and derivatives trades.
  • Price broke out last week above $7.20. Even stronger buying pressure ensued in the first half of this week with yet another big white candlestick with an open at the same levels as last week's close. Very bullish situation.
  • MACD - is trending upwards is increased positive divergence.
  • RSI (25w) - heading towards 70% levels with some leeway to go before overbought status.
  • Long with TP - $$7.80 (-2% from current levels) in the near term (1-2weeks). If buying pressure still persists, expect the stock to breakout to the next support level at $8.60 which translates to almost a 10% gain from Wednesday close price. Prepare to provide 6-8 weeks for $7.80 resistance to be broken as that is roughly the same time period between May to Aug 2011 where the stock tumbled through the price region.

2. SembCorp (Oil & Gas; Utilities; Env Management)
  • Prices appear steadily appreciating towards $5.70. In a stealth rally, Semb Corp has almost risen $0.60 since Nov 2012. Volumes are still thin but that is the surprise of the move since 2 months ago. Large white bullish candlestick currently formed this week.
  • MACD - MACD crossed into the positive territory this week. Positive divergence showing good pace.
  • RSI (25w) -RSI climbing steadily but slowly and managed to ease past 50% already.
  • Long with TP - $$5.70 (~5% from current levels) over 2-3 weeks. No reason for prices to remain resisted at current levels. Expect trend to continue upwards in the absence of company/industry news.

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