Yangzijiang Reaching Overbought Levels

Yangzijiang has been performing very well lately together with its fellow maritime counterparts given the slightly improving economic outlook coupled by the encouraging data that US is leading Europe out of its recession and problems. Last week, we saw interest in Cosco begin to take a breather as its price started to lose momentum at its peak. Given that Yangzijiang had not increased as much as Cosco in the turn of the year, it was understandable that it was still having some upside this week. However, could it be time for it to give up some momentum?

Yangzijiang on the daily.

Yangzijiang on the  weekly.

As it seems, with the Fibonacci projections, its daily stock price has reached a take profit level and probably almost time for a breather. On the weekly, the RSI indicator is trending very close to 70, a region that suggests overbought conditions even after smoothing out daily volatility.
For those vested, as it seems, it is a good time to take profit since it has risen considerably. You do not want to be finding the peaks - take your profits first. Of course, there might be further upside given the strong volume and price action on 9 Feb but stock price is fast trending to danger region.
For those who are not on the boat, you are better off elsewhere!

Food for Thought

The STI has rebounded by almost 10% since the start of the year, a bull run that was probably overdue. As we savour the current period of market boom, it might be worthwhile to direct your attention to the STI monthly statistics on turnover of the market. 

The graph below shows value/share of each of the key sectors over a period of 3 months. 

Are these what the market is trying to tell us about price reflecting the performance, market psychology, fundamentals of each sector? Utilities has been increasing steadily in value/share transacted over the last three month. Undervalued but up and coming proposition? As expected, consumer services, financials and oil and gas are sectors with high valuations. Could this graph yield us more insights to changes in the stock market to come?

Healthy Market Exposure

Thailand, Indonesia and Hong Kong seem to be worth alternatives to investing in Singapore equities and I am terrible bullish about Asia growth fueling inflow of investments.

India, on the other hand, took a huge correction in 2011 but look at the slope of its recovery towards the end of 2011 and start of 2012. Tremendous! Undervalued region that is now up and coming.