Olam 300508

Not only did Olam break the 2.97 resistance (blue --), we also saw Olam smashing the uptrend resistance (low green), and long term downtrend resistance (upp pink). Initially, there was a possibility of Olam weakening when it tested the downtrend support (upp red) and even the long term downtrend support (low pink).

However, things swung dramatically after Olam hit the long term downtrend resistance (low pink). Olam began to reverse and there were tremendous buying, pushing Olam up to the 3.18 neckline (blue ...), before closing just below the uptrend resistance (upp green).

From the volume distribution, we can see a huge bar around the 3.11 - 3.13 region (red ...). So if Olam were to open below this level (red ...) on monday, this block would become a mountainous block for Olam to overcome.

If this happens, we could see Olam softening to the 3.03 level, where the long term downtrend support (upp pink) is located. And if that breaks, the next support looks to be around the 2.97 level (blue --).

If Olam opens above the 3.13 level (red ...), and breaks the uptrend resistance (upp green), and the 3.18 neckline (blue ...), we might see Olam flying to the 3.30 resistance (green --)



For monday :

Support @ 3.13 (red ...), 3.057 (low green), 3.032 (upp pink), 2.97 (blue --), 2.935 (upp blue), 2.836 (upp red), 2.822 (low pink), 2.74 (red --)

Resistance @ 3.13 (red ...), 3.17 (upp green), 3.18 (blue ...), 3.30 (green --)

Good Luck !!

Semb Marine 300508

After opening right on the 4.60 resistance (red --) today, we saw selling pressure pushing Sembcorp Marine below the uptrend resistance (upp blue, upp light blue). Sembcorp Marine almost tested the 4.44 support (pink ...).

If Sembcorp Marine opens below the 4.60 resistance (red --) on monday, we could see it trading sideways, support by the uptrend support (mid light blue) and 4.44 support (pink ...).

For Sembcorp Marine to have a chance of breaking the long term downtrend resistance (upp pink) and uptrend resistance (upp light blue), it would have to stay above the 4.60 neckline.



For monday :

Support @ 4.60 (upp blue, red --), 4.492 (mid light blue), 4.44 (pink ...), 4.378 (low light blue)
Resistance 4.64 (upp light blue, upp pink, pink --), 4.75 (red ...)

Good Luck !!

Sky Petrol 300508

Even after the Gravestone Doji on 22 may, there is still no sign of a trend reversal for Sky China Petrol. If we go back further to 14 mar, we can see another Gravestone Doji formed.

The trend for Sky China Petrol now is a little similar to the trend during the march period. So we could see more selling before Sky China Petrol reverses its down trend.

Looks like more patience is needed.



For monday :

Support @ 0.305 (low blue), 0.304 (mid red), 0.300
Resistance @ 0.315 (green --), 0.322 (upp red), 0.323 (upp blue), 0.330 (light blue --)

Good Luck !!

SPC 300508

SPC continued the downtrend when it started the week below the 7.20 support (blue --) and the long term downtrend support (mid red). We even saw SPC breaking the 6.95 support (light blue --) momentarily on 28 may, before closing 1 bid above it.

There was a small hope of a rebound on 29 may when it broke the uptrend resistance (upp blue) and tested the long term downtrend resistance (mid red). However, the selling resumed the next day, accompanied by an even bigger volume, finally pushing SPC below the 6.95 support (light blue --) and closing right on the uptrend support (low blue).

The next support for SPC, based on volume distribution, looks to be around the 6.80 level. Which is also near where the 2 downtrend support meet (low pink, low red). If the 6.80 support breaks, the next support, based on volume distribution, looks to be around the 6.70 level.



For monday :

Support @ 6.90, 6.81 (low red, low pink), 6.70
Resistance @ 6.92 (low blue), 6.95 (light blue --), 7.103 (upp blue), 7.128 (upp pink), 7.14 (mid red)

Good Luck !!

STX Pan Ocean 300508

STX Pan Ocean has now recovered to where it was a week ago, up from a low of 3.10 on 26 may. We also saw STX Pan Ocean breaking the downtrend resistance (mid red), and 3.47 resistance (red --) yesterday (29 may).

However, the rise this week was accompanied by lower volume each day. So it remains to be seen if STX Pan Ocean can maintain trading above the 3.47 level (red --). We might also see STX Pan Ocean trading sideways, between the 3.47 (red --) and 3.53 (pink --) levels.

If STX Pan Oceans breaks the downtrend support (mid red), we could see it testing the 3.36 support (blue ...) again.



For monday :

Support @ 3.47 (red --), 3.44 (low red), 3.427 (mid blue), 3.36 (blue ...), 3.26 (green ...)
Resistance @ 3.53 (pink --), 3.54 (mid red), 3.575 (upp blue), 3.65 (green --), 3.82 (upp red)

Good Luck !!

Uni Asia Finance 300508

It has been 2 months since I last talked about Uni Asia Finance. Let's take a look at what has happened to Uni Asia Finance since.

Ever since hitting a peak of 0.860 on 24 apr, it has been downtrend for Uni Asia Finance, culminating with the formation of a Gravestone Doji on 22 may. The next day saw Uni Asia Finance breaking the downtrend support (mid red).

Uni Asia Finance even broke the 0.720 support (pink --) on the beginning of the week (26 may). The next support for Uni Asia Finance, based on volume distribution, looks to be around the 0.675 - 0.680 region (blue --).

If Uni Asia Finance breaks this support (blue --), we might see it testing the long term downtrend support (low pink) at the 0.645 level.



For monday :

Support @ 0.675 (low blue, blue --), 0.670 (low red), 0.645 (low pink)
Resistance @ 0.720 (mid red, pink --), 0.730 (upp pink), 0.745 (upp blue), 0.775 (red --)

Good Luck !!

Yangzijiang 300508

After breaking the 0.985 support (blue ...) on 28 may, the next support for Yangzijiang, based on volume distribution, would be around the 0.965 level (pink --).

The 1.15 neckline (pink ...) now seems far away. If Yangzijiang breaks the 0.965 support (pink --), we might even see it testing the 0.935 support (blue --).

We would probably see Yangzijiang trading sideways for the time being, between the 0.965 support (pink --), and 0.985 resistance (blue ...).



For monday :

Support @ 0.968 (low green), 0.965 (pink --), 0.935 (blue --), 0.932 (low red)
Resistance @ 0.980 (mid red), 0.985 (blue ...), 1.00 (upp green), 1.01 (red --), 1.02 (upp red)

Good Luck !!

Semb Marine 290508

After testing the 4.27 support (pink ...) at the beginning of the week, Sembcorp Marine resumed its uptrend momentum to test the 4.60 resistance (red --) and closing right on it.

If Sembcorp Marine opens above the uptrend support (mid light blue), we might see Sembcorp Marine breaking the 4.60 resistance (red --) for good.

If the uptrend momentum cannot be sustained, we might see Sembcorp Marine trading sideways betweem the 4.60 resistance and downtrend support (low pink).



For tomorrow :

Support @ 4.576 (low pink), 4.41, 4.35 (low light blue), 4.33 (mid blue), 4.27 (pink ...), 4.22 (low pink)

Resistance @ 4.60 (red --), 4.66 (upp blue), 4.80 (upp light blue)

Good Luck !!

Olam 290508

Although Olam opened just above the downtrend resistance (upp red), it was only after lunch that we saw Olam attempting to break the uptrend resistance (mid green).



We finally saw Olam breaking the uptrend resistance-turned-support (mid green) later in the afternoon, closing at the same price as the Doji formed on 16 may.

As the volume distribution bars suggests, we might see some resistance at 2.92, before Olam attempts to test the 2.97 resistance (blue --).

So, if Olam opens above the uptrend support (mid green), we might see it attempting to test the 2.97 resistance (blue --).

Otherwise, we could see Olam trading sideways, supported by the 2 downtrend supports (low red, low pink).

For tomorrow :

Support @ 2.91 (mid green), 2.85 (low red), 2.825 (low pink), 2.74 (red --), 2.73 (low red)
Resistance @ 2.92, 2.97 (blue --), 3.027 (upp green), 3.037 (upp pink)

Good Luck !!

Ferro China 280508

After testing the 1.55 support (blue --) at the beginning of the week, Ferro China finally broke it yesterday, which also saw it breaking below the 1.52 support (light blue --), before closing right on it.



Today, we saw FerroChina opening below the long term downtrend resistance (mid pink), again breaking below the 1.52 support before closing right on it.

If Ferro China breaks the 1.52 support (light blue --), we might see it testing the 1.44 support (red ...).

For tomorrow :

Support @ 1.52 (light blue --), 1.51 (low blue), 1.45 (low pink), 1.44 (red ...)
Resistance @ 1.538 (mid pink), 1.55 (blue --), 1.586 (low red), 1.617 (upp blue), 1.645 (upp pink)

Good Luck !!

Semb Marine Research Report

by Morgan Stanley (27 May)

Summary: We retain our 'overweight-V' ratin, while our mid-cycle multiple of 18 times 09 estimates is unchanged.

However, extended visibility of orders from Petrobras' recent announcement and high oil prices could push the stock near its peak trading range of 20 times.

What's New: Last week, we hosted the management of SembCorp Marine (SMM) to meet with US-based clients. We came out more confident about the business fundamentals and less apprehensive about industry concerns.

Investor feedback: Investors are very bullish on the macro theme of oil services industry, yet concerned by rig builder's limited operating leverage.

Positive takeaways from meetings include: Strong order momentum, order visibility from the Petrobras announcement, capacity expansion option, and revenue per unit increase due to input cost increase and margin improvement.

What's changed: Our EPS estimate revision is based on lower earnings from 30 per cent owned subsidiary Cosco and slower than expected order flow in H1 08 taking 2008 EPS lower by 9 per cent, but our 2009 estimates move up based on higher-than-expected margin from improved pricing power.

Risks do exist: SMM's stock price is up 27 per cent in the last three months, while the oil price is up 33 per cent in the same period. The stock is trading at 18 times forward earnings, above its long-term average. We believe lots of positive news has been factored in the price.

-Research Report by Morgan Stanley (27 May)

China HongX 290508

China Hongx continues to trade within the downtrend channel, making new lows everyday. China Hongx also tested the downtrend support (low pink) today, and also closed right on the 0.590 support (green --).



China Hongx's peaks are also getting lower each day. If China Hongx breaks the 0.590 support (green --), the next support, based on the volume distribution, looks to be around 0.570 to 0.580 level (blue --).

Intrestingly, the 0.580 level is also where the the long term downtrend support (low red) and downtrend support (low pink) meets. So we might see a rebound for China Hongx if it hits that level.

For tomorrow :

Support @ 0.590 (low blue, green --), 0.580 (low red, low pink, blue --), 0.570, 0.555
Resistance @ 0.606 (mid red), 0.610 (blue ...), 0.620 (upp pink), 0.626 (upp blue), 0.630 (green ...)

Good Luck !!

STX Pan Ocean 270508

What a start to the week for STX Pan Ocean. If you have been following STX Pan Ocean long enough, you would know that such roller-coaster rides are nothing unusual.

STX Pan Ocean started off the week by opening below the long term downtrend support (low red), going on to break the 3.26 support (green ...) and 3.18 support (blue --) before settling down for the day just above the 3.26 support.

Today, STX Pan Ocean completely reversed the downtrend. Opening just below the 3.26 support (green ...) before going on to break long term downtrend resistance (low red) and 3.36 resistance level (blue ...).

If STX Pan Oceans opens tomorrow above the 3.36 neckline (blue ...) we might see it going for another resistance breaking run up again.



For tomorrow :

Support @ 3.36 (blue ...), 3.30 (low red), 3.26 (green ...), 3.18 (blue --)
Resistance @ 3.406 (low blue), 3.455 (mid red), 3.47 (red --), 3.53 (pink --)

Good Luck !!

Olam 270508

After opening below the 2.70 level (and even below the 2.63 support - pink --) yesterday, we saw Olam testing the 2.60 support, before recovering to close the day on the 2.74 resistance level (red --), resuming trading within the uptrend channel (green).



Olam today opened above the 2.74 resistance level. Although it tested the 2.74 support (red --) and downtrend support (mid pink), Olam was still trading within the uptrend channel.

We then saw Olam testing the downtrend resistance (upp pink), before closing just below it.

If Olam can continue to trade within the uptrend channel (green), there's a good chance we might see it breaking out of the downtrend channel (pink, red).

For tomorrow :

Support @ 2.75 (low green), 2.74 (red --), 2.73 (mid pink), 2.66 (mid red)
Resistance @ 2.83 (upp pink), 2.86 (upp red), 2.92, 2.96 (blue --)

Good Luck !!

Cosco 270508

Cosco opened below the uptrend support (low blue) on monday, which meant it also broke the 3.36 support (green ...). Cosco and also tested the 3.26 support (blue ...), and long term downtrend support (pink). However, Cosco managed to recover a little to close above these 2 supports.



Trading for Cosco today was still restricted to betweent the 3.36 and 3.26 trendlines. During closing, Cosco managed to close above the 3.36 resistance (green ...). However, since there wasn't much volume, we may still see Cosco trading like it did today.

For tomorrow :

Support @ 3.26 (low red, blue ...), 3.20 (low pink)
Resistance 3.36 (green ...), 3.39 (mid red), 3.43 (low blue), 3.48 (blue --).

Yangzijiang 230508

After testing the 1.15 resistance level on 5 may, Yangzijiang didn't last long and came back down to earth on 9 may. Thereafter, it has been downhill for Yangzijiang ever since.



After trading sideways for about a week, Yangzijiang finally broke the 1.08 support (green --) on 21 may.

Today, further selling pressure pushed Yangzijiang down and it broke the uptrend support (low green), downtrend support (mid red) and also the 1.08 support (red --).

The next support based on volume distribution for Yangzijiang would be around the 0.985 level (blue ...).

For monday :

Support @ 0.985 (blue ...), 0.940 (low red, blue --)
Resistance @ 1.01 (mid red, red --), 1.02 (low green), 1.07 (upp red), 1.08 (green --)

Good Luck !!

STX Pan Ocean 230508

After opening right on the 3.47 support (red --), STX Pan Ocean started trading above 3.53 resistance (pink --), before softening to break below the 3.47 support and long term downtrend support (mid red).

STX Pan Ocean even went on to break, and closed the day below, the 3.36 support (blue ...).

What a week it has been for STX Pan Ocean ! Started the week testing the 4.00 level, and ended the week breaking the 3.36 support.

If you look at its trading patterns since 21 apr (or even earlier), you'd find that such ups and downs are not unusual for STX Pan Ocean.

If STX Pan Ocean breaks the long term downtrend support (low red), we could see it testing the 3.26 support (green ...) and 3.18 support (blue --).

For all you know, we could see STX Pan Ocean testing the long term downtrend support (low red), and then rebounding up to test the 3.47 resistance (red --) and 3.53 resistance (pink --).



For monday :

Support @ 3.308 (low red), 3.26 (green ...), 3.18 (blue --).
Resistance @ 3.46 (mid red), 3.47 (red --), 3.53 (pink --), 3.60 (upp blue), 3.65 (green --)

Good Luck !!

SPC 230508

After its dramatic rise and fall in apr, SPC has more or less, been trading within the downtrend channel (red) and between the 7.20 support (blue --) and 7.37 resistance (green --).



Today, we saw SPC trading above the downtrend resistance (upp pink, upp red), and testing the 7.37 resistance (green --). However, there wasn't enough buying momentum and SPC closed right on the downtrend resistance (upp pink).

If SPC opens above the downtrend resistance (upp red) on monday, there's a good chance we might see it testing the 7.37 resistance again.

However, if SPC opens below the downtrend resistance (upp red), we could see it trading sideways again, just like it was doing since 29 apr.

For monday :

Support @ 7.23 (upp pink), 7.20 (blue --), 7.17 (low blue), 7.11 (low red)
Resistance @ 7.29 (upp red), 7.37 (green --), 7.47 (upp blue)

Good Luck !!

Sky Petrol 230508

After testing, and failing to break, the 0.375 resistance (red --) and 24 apr, Sky China Petrol went downtrend from 25 apr onwards, breaking the 0.345 support (blue --) and 0.330 support (light blue --).



Sky China Petrol managed to find support at the 0.315 support (green --) and also formed a Gravestone Doji on 22 may when it closed right on the downtrend support (mid red).

Since the trend prior to the Gravestone Doji was a downtrend, we could see the start of a trend reversal. For that to happen, Sky China Petrol would have to continue to trade with the uptrend channel (blue) and also break the 0.330 resistance (light blue --).

For monday :

Support @ 0.320, 0.318 (low blue), 0.315 (green --), 0.314 (mid red)
Resistance @ 0.330 (light blue --), 0.333 (upp red), 0.335 (upp blue), 0.345 (blue --)

Good Luck !!

Olam Research Report

by DBS Group (16 May)

3Q2008 earnings were slightly above expectations, rising by 39% y-o-y to $56m on revenue growth of 52% y-o-y to $2.4b. As at 9M2008, Olam's bottom line rose by 31% y-o-y to $103m, as top line expanded by 26% y-o-y to $3.8b.

The robust performance was led by broad based growth that saw both volumes and net contribution per tonne increase across all segments (excluding Queensland Cotton's results) on y-o-y. We raised out FY2008 earnings numbers by 6%, kept our FY2009 numbers and introduced FY2010 forecast.

Olam continues to execute well on its expansion strategy and deliver on earnings growth. Target price is based on 30 times FY2009 PER, predicated on one time PEG.

We are forecasting 31% EPS CAGR for Olam over FY2007-FY2010F.

-Research Report by DBS Group (16 May)

Ferro China Research Report

by CIMB-GK (22 May)

The expansion of FerroChina's Xinghai and Xingyu facilities appear on track. With its new lines, Ferro China aims to boost output, improve the product mix and gross margins.

While FerroChina suffered an initial shock in 4Q2007 when there was a one month lag to raise selling prices to accomodate higher feedstock prices, the margin between HRC (hot-rolled coil) and galvanised steel has been rising slowly.

We revise our FY2008-2010 forecast marginally by between -0.4% to 1.5%. With improved business visibility and possible value-creation from strategic investors, we upgrade out target CY2009PE to eigth times from seven times, still pegged at 35% discount to industry peers to account for its smaller size.

-Research Report by CIMB-GK (22 May)

Semb Marine 230508

Ever since breaking the 4.05 neckline on 9 may, it has been uptrend all the way for Sembcorp Marine. It even broke the 4.27 resistance (pink ...) on 20 may.



Sembcorp Marine is now within sight of the 4.58 resistance (red --), which is the level from which it went on a downward spiral on 31 oct 2007.

If Sembcorp Marine can continue to trade above the uptrend support (mid light blue) next week, there might be a chance of testing the 4.58 resistance (red --).

However, If the uptrend support (mid light blue) breaks, we might see Sembcorp Marine consolidate around the 4.27 support (pink ...).

For monday :

Support @ 4.444 (mid light blue), 4.284 (mid blue), 4.27 (pink ...), 4.25 (low pink), 4.21 (low light blue)

Resistance @ 4.55 (upp pink), 4.58 (red --), 4.62 (upp blue), 4.67 (upp light blue)

Good Luck !!

Olam 230508

Olam did indeed open below the 2.74 resistance level (red --) today. After breaking the uptrend support (low green) and downtrend support (low pink), Olam went on to test the 2.63 support (pink --), before closing right on the uptrend support (low green).



From the chart, we can see some support around the 2.67 - 2.68 level. We also see that the uptrend support (low green) meets the downtrend resistance (mid red) at the 2.70 level on the next trading day (monday 26 may).

If Olam opens below that 2.70 level, we might see it trading between the downtrend resistance (mid red) and the 2.60 support (pink ...).

If Olam manages to Olam above the 2.70 level, there's a chance it might test the 2.74 resistance (red --),

For monday :

Support @ 2.647 (low pink), 2.63 (pink --), 2.60 (pink ...), 2.53 (low red)
Resistance @ 2.70 (low green, mid red), 2.74 (mid pink, red --), 2.83 (upp pink), 2.89 (upp red)

Good Luck !!

Ferro China 230508

Ferro China was initially on its way to testing the long term downtrend resistance (upp pink). The highest it went to was 1.67, before it started to soften.



FerroChina then went on to break the downtrend support (low red) and uptrend support (mid light blue). It also tested the 1.57 support (blue --) before closing right on it.

Looking at the volume distribution, we should see good support around the 1.55 to 1.58 level. If this support breaks, we could be looking at 1.50 - 1.52 as the next support (light blue --).

For monday :

Support @ 1.57 (low pink, blue --), 1.53 (low light blue), 1.50 (light blue --)
Resistance @ 1.59 (mid light blue, low red), 1.61, 1.63, 1.65, 1.67 (upp pink)

Good Luck !!

Cosco 230508

There was hope initially of a small reversal when Cosco opened above the uptrend resistance (upp blue) and tested the 3.62 neckline (red --).



However, things took a turn and the downtrend resumed and selling pressure once again forced Cosco down, breaking the 3.48 support (blue --), the uptrend support (low blue), and closing right on the 3.36 support (green ...).

If Cosco breaks the 3.36 support (green ...), the next support, based on the significant volume distribution, would be around the 3.26 level (blue ...).

For monday :

Support @ 3.36 (green ...), 3.31 (low red), 3.26 (blue ...), 3.15 (low pink)
Resistance @ 3.394 (low blue), 3.48 (blue --), 3.557 (upp blue), 3.57 (mid red), 3.605 (upp pink)

Good Luck !!

China HongX 230508

China Hongx continues to trade in the downtrend channel (pink), closing right on the 0.630 support (green ...) and uptrend support (low blue).



Would the current sell down be similar to the one during the 29 feb - 20 mar period? If China Hongx breaks the 0.590 support (green --), we might see a similar selldown.

For monday :

Support @ 0.630 (green ...), 0.616 (low red), 0.610 (blue ...), 0.600 (low pink), 0.590 (green --)
Resistance @ 0.635 (low blue), 0.650 (upp pink, blue --), 0.657 (mid red), 0.675 (upp blue)

Good Luck !!

BakerTech 230508

Another typical trading pattern for Baker Tech today which saw it close right on the downtrend support (mid red) and below the long term downtrend support-turned-resistance (mid pink), and also the short term uptrend support (blue).



Would we see BakerTech trading sideways, like during the 15 - 29 apr period? Or soften further, similar to the 6 - 15 may period?

We would have to see where Baker Tech opens on monday. If it opens below the long term downtrend resistance (mid pink) and breaks the downtrend support (mid red), we most likely would see BakerTech softening further.

If Baker Tech opens and stays above the uptrend resistance (mid green), we might see it trading sideways around the 0.310 level.

For monday :

Support @ 0.304 (mid red), 0.296 (low red), 0.295 (low green), 0.290 (low pink)
Resistance @ 0.310 (blue, mid pink), 0.312 (mid green), 0.315 (pink --), 0.325 (red --)

Good Luck !!

Astons Express

Had lunch with Jit Leong and Adam last wednesday at this coffee shop along Farleigh Ave (near Serangoon Garden Circus). Luckily managed to find parking as there aren't that many lots available.

We were there previously for the chicken rice, which was also good (maybe will write about that the next time). During that time, we saw people having western food, but I couldn't see the stall. Thought they ordered from the another coffeeshop which was just opposite.

Then after scanning the stalls again, managed to see the signboard. There was so much clutter infront of their stall that I had missed it initially. Astons Express is not your usual coffeeshop or market western grill stall. Their quality is much better, and so is their price, which is still reasonable.



The guy (forgot to ask for his name) was also friendly. Giving recommendations and answering our queries (as they had many different cuts of steak). Finally, Jit Leong decided on the New York strip ($13.90), which was a bigger portion than the sirloin ($11.90) he originally wanted.

I wanted the New York strip but the guy recommended the Ribeye X-Cut ($14.90), which he said was more marbled. Marbled? Ok lor. Give it a try.

You get 2 side dish to go with your steak too. You can choose from baked potatoes, baked beans, coleslaw, onion rings, veggies, corn cob.

Waiting time was shorter (abt 10-15mins) than what he had informed us (20 mins). The steaks turned out really well.

Jit Leong had his medium done. Requested for coleslaw and baked potatoes. Later, he said that luckily got the baked potatoes, if not probably won't be full. Think the guy mentioned that the New York strip was 250g, compared to the sirloin which was only 180g.



Mine was done medium rare. Requested for onion rings and veggies. Both steak turned out really nicely done. With a hint of satay and black pepper seasoning. There was also some mushroom sauce to go with the steak. Would have been perfect if we had some wine to go with the steak. But since it's lunch and we had to go back to work, probably next time.




Astons Express also serves pasta (seafood, bolognaise, marina) which comes with soup of the day. And also the usual chicken, pork chops, sausages, etc. May try their other grills some other time.

STX Pan Ocean 220508

After hitting a high of 4.00 on 20 may, STX Pan Ocean gapped down during the last 2 trading days. Yesterday, STX Pan Ocean broke the uptrend resistance (upp blue). Today, it broke the uptrend support (low blue).

STX Pan Ocean also came very close to testing the long term downtrend support (mid red). STX Pan Ocean closed on the 3.53 volume support (pink --).

If STX Pan Ocean breaks the 3.53 support (pink --) again tomorrow, the next support would be around 3.47, based on the volume distribution.



For tomorrow :

Support @ 3.47, 3.46 (low red), 3.36
Resistance @ 3.55, 3.58, 3.63, 3.65 (green --), 3.69 (low blue)

Olam 220508

After breaking the uptrend support on 20 may, Olam today broke and closed below the 2.74 support (red --) as well as the downtrend support (low red, mid pink).



If Olam opens below the 2.74 resistance (red --) tomorrow, we might see it trade within the downtrend channel (low/mid pink).

If Olam breaks the uptrend support (low green), we might see it test the 2.60 (pink...) to 2.63 (pink --) support levels.

For tomorrow :

Support @ 2.67 (low green), 2.65 (low pink), 2.63 (pink --), 2.60 (pink ...)
Resistance @ 2.71 (low red), 2.74 (mid pink, red --), 2.84 (upp pink)

Good Luck !!

Ferro China 220508

After unsuccessfully breaking the 1.74 neckline (red --) 2 weeks ago, the closest Ferro China came to testing the neckline again was on 15 may when it hit a high of 1.72.



Since then, FerroChina have softened and is now trading closer and closer to the uptrend support (mid light blue). If Ferro China breaks the uptrend support (mid light blue) and downtrend support (low red), we might see it testing the 1.57 support (blue --).

For tomorrow :

Support @ 1.61 (mid light blue), 1.59 (low red), 1.57 (low pink, blue --)
Resistance @ 1.68 (upp pink), 1.71 (upp light blue), 1.73 (upp red), 1.74 (red --)

Cosco 220508

After forming the Gravestone Doji on 20 may, Cosco's highs have been lower, with 3.52 being the temporary support. Cosco also closed below the downtrend support (mid red).



We might see Cosco continue to trade sideways, with 3.48 acting as the support (blue --). If the 3.48 support (blue --) breaks, the next support based on volume distribution would be around the 3.40 level.

For tomorrow :

Support @ 3.55 (low green), 3.53 (low blue), 3.52, 3.48 (low red, low pink, blue --), 3.40
Resistance @ 3.58 (mid red), 3.62 (red --), 3.63 (upp pink), 3.68 (upp red)

Good Luck !!

China HongX 220508

We continue to see a lot of selling pressure on China Hongx, forcing it to open below the 0.635 support (green ...) yesterday. However, China Hongx managed to recover to close above the downtrend resistance (low red ...) yesterday.



However, selling continued unabated today, forcing China Hongx yet again to close below the 0.650 support (blue --) this time, which is also right on the downtrend support (upp red).

From the chart, you can see that the 2 downtrend resistances (upp pink, low red ...) converge around the 0.650 support in another day or two. So we might see some action either tomorrow or next monday. Provided of course, China Hongx does not break the uptrend support (low blue) and 0.635 support (green ...).

For tomorrow :

Support @ 0.641 (upp red), 0.635 (green ...), 0.630 (low blue), 0.610 (blue ...), 0.608 (low pink, low red)

Resistance @ 0.650 (blue --), 0.655 (low red ...), 0.660 (upp pink), 0.670

Good Luck !!

BakerTech 220508

Did you manage to catch a ride when BakerTech broke the uptrend resistance (mid green), and long term downtrend resistance (mid pink) yesterday? Baker Tech also broke the 0.315 neckline (pink --) and also tested the 0.325 neckline (red --) before closing right on it.



Today, we saw BakerTech testing the 0.325 neckline again, as well as the uptrend support (mid green), before closing to form a Harami Cross, which typically indicates a trend reversal.

Since today is only the second day after the breakout yesterday, we would need wait for confirmation of a trend reversal tomorrow. This confirmation may be in the form of a black candlestick, a large gap down or a lower close on the third day.

If you look at the previous breakouts, Baker Tech usually trades sideways after the second or third day from its breakout, forming Harami Crosses along the way.

If we look at the volume distribution, the 0.325 neckline still looks quite a formidable block for BakerTech to overcome. If Baker Tech trades sideways, we might see it consolidating around the 0.305 to 0.310 region, based on volume distribution.

For tomorrow :

Support @ 0.315 (pink --), 0.311 (mid green, mid pink), 0.306 (low red, blue), 0.305
Resistance @ 0.325 (red --), 0.328 (upp red), 0.330 (upp green), 0.333 (upp pink), 0.340 (red ...)

Good Luck !!

Olam 200508

After attempting to test the 2.96 resistance (blue --) for the umpteenth time, Olam finally broke the uptrend support (low green) today. Olam just about closed on the downtrend support (mid pink).



The current pattern is quite similar to the one during the second half of April, where after Olam has broke out on 15 apr, it went sideways for about 2 weeks, before breaking out again on 6 may.

Will we see Olam repeat the pattern? We would first need Olam to break the 2.96 resistance (blue --).

For tomorrow :

Support @ 2.85 (mid pink), 2.75 (low pink), 2.74 (low red, red --)
Resistance @ 2.93 (low green, upp red), 2.96 (blue --)

Good Luck !!

Cosco 200508

Cosco today formed a Gravestone Doji. Although Cosco managed to break the uptrend resistance (upp blue) and 3.62 resistance (red --), it hit the 3.70 neckline before plummeting back down to the opening price.



Since Cosco was on an up trend prior to today, the Gravestone Doji would most likely signal a trend reversal as the Gravestone usually represents the 'graves' of the bulls that have 'died' defending.

The Bearish Gravestone Doji Pattern has more bearish implications than a Bearish Shooting Star Pattern. The longer the upper shadow and the higher the price level, the more bearish the implications of the Bearish Gravestone Doji Pattern will be.

We still need a confirmation the next day to be more certain of the trend reversal. We may see Cosco opening below the Gravestone (below the downtrend resistance - low red), and the larger the gap down, the stronger the confirmation.

For tomorrow :

Support @ 3.59 (low red), 3.53 (low pink), 3.51 (mid blue), 3.50 (low green), 3.48 (blue --)
Resistance @ 3.62 (red --), 3.63 (upp green), 3.66 (upp blue), 3.68 (upp pink), 3.70 (upp red)

Good Luck !!

China HongX 200508

Although China Hongx opened above the uptrend support (low blue) and downtrend support (low red ...), selling pressure throughout the day pushed it down until it broke the 0.650 support (blue --) and downtrend support (upp red).



Based on the volume distribution bars, the next significant support could be at the 0.635 level (green ...). If China Hongx opens below the 0.650 support (blue --) tomorrow, we might see it testing the 0.635 support (green ...).

If China Hongx opens above the 0.650 support (blue --), trading would probably be limited by the downtrend resistance (upp pink).

For tomorrow :

Support @ 0.635 (green ...), 0.6325 (low pink), 0.614 (low red), 0.610 (blue ...)
Resistance @ 0.646 (upp red), 0.650 (blue --), 0.661 (low red ...), 0.668 (low blue), 0.675 (upp pink)

Good Luck !!

Olam 150508

After consolidating for much of the week around the 2.90 level, we now see Olam being 'pushed' into a corner.



The crucial level would be 2.88, where the downtrend resistance (upp red) and uptrend support (low green) meet.

If Olam breaks above the 2.88 level, as well as the 2.93 resistance (blue --), we could see Olam starting another uptrend movement.

However, if Olam trades below the 2.88 level, we could see it testing the 2.74 support (red --).

For tomorrow :

Support @ 2.87 (low green), 2.85 (mid pink), 2.82 (low red), 2.76 (low pink), 2.74 (red --)
Resistance @ 2.904 (upp red), 2.93 (blue --), 3.00 (upp green)

Good Luck !!

Cosco 150508

After consolidating for much of the week, Cosco finally made a move and broke 3 resistances on the way up. Cosco also managed to close above the 3.48 resistance level (blue --).



It now remains to be seen if Cosco can break the long term downtrend resistance (upp pink). To have a good chance of doing that, Cosco would have to at least continue to trade within the uptrend channel (green).

Chances will be increased further if Cosco can open above the 3.48 level (blue --). You can see from the chart that the downtrend resistance (upp red) and uptrend support (mid blue) meets at the 3.48 level too. So if Cosco can open at or above 3.48, we could see some good support there.

However, if Cosco loses its uptrend momentum and breaks the downtrend support (low red), we might see Cosco testing the 3.26 support level (blue ...) again.

For tomorrow :

Support @ 3.48 (upp red, mid blue, blue --), 3.43 (low green), 3.38 (low red), 3.37 (low pink)
Resistance @ 3.51 (upp pink), 3.55 (upp green), 3.62 (upp blue, red --)

China HongX 150508

After closing below 2 major supports yesterday, China Hongx opened right on the 0.650 support level (blue --), which is also below the long term downtrend support (low red).



However, that was the lowest for China Hongx today, and it went on to recover and even tested the uptrend resistance (low blue).

If China Hongx breaks the 0.650 support (blue --), we might see it testing the 0.630 level, or even the 0.610 level (blue...).

If China Hongx trades above the downtrend support (low red ...), we could see it attempting to test the uptrend resistance (low blue) again.

For tomorrow :

Support @ 0.666 (low red ...), 0.652 (low red), 0.650 (blue --), 0.630, 0.620 (low red), 0.610 (blue ...)

Resistance @ 0.690 (low blue), 0.705, 0.715 (upp red ...), 0.720 red --)

Good Luck !!

BakerTech 150508

BakerTech today tested the long term downtrend support (low red), before recovering to close just below the long term downtrend resistance (upp red).



From the volume distribution bars, we can see that the 0.305 and 0.310 has quite a big block for Baker Tech to overcome. Once BakerTech clears 0.310, I believe the next resistance would be at the 0.325 level (red --).

However, if Baker Tech breaks the long term downtrend support (low red), we might see it testing the 0.280 support level (green --).

For tomorrow :

Support @ 0.293 (low pink), 0.2888 (low green, low red), 0.280 (green --)
Resistance 0.300 (upp red), 0.305 (mid green), 0.310, 0.315, 0.325 (red --)

Good Luck !!

Olam Q3 net profit up 38.5%

Olam International Limited, a global supply chain manager of agricultural products and food ingredients, on Thursday reported a year-on-year 38.5 per cent growth in net profit to $55.9 million for the third quarter ended March 31, 2008.

During Q3 FY2008, sales surged 52.2 per cent to $2.4 billion mainly driven by higher underlying commodity prices and sales volume growth.

For the nine month period, the group's net profit rose 31 per cent to $102.8 million over the previous corresponding period. Sales grew by 45.1 per cent to $5.73 billion. Existing businesses accounted for 62.9 per cent of the growth in volume while acquisitions accounted for the balance 37.1 per cent.

Said Olam's Group CFO, Krishnan Ravikumar: 'The third quarter is typically the strongest due to the seasonality of our business given that most of the harvesting happens between October and March.'

China HongX Research Report

by DBS Group (13 May)

XI'AN Trade Show and store visit story: We had the opportunity to visit eight different China Hongxing stores within Xi'an city, including the 300 sqm flagship store, as well as the group's logistics centre for China's northwest region. We also attended its trade show for the upcoming winter season.

Point: China Hongxing has expanded its presence in Shaanxi province from almost zero two years ago to over 50 points of sales (DBS Vickers' estimate) currently and we believe the group has plans to add another 100 stores over the next two years to capture more market share in this emerging region.

At the same time, the recently set up logistics centre, which is also responsible for staff training and monitoring distribution and inventory sales as well as market research, should provide valuable support to the group's push in this part of China.

We were also treated to China Hongxing's winter fashion show at its latest trade fair, where it was apparent that greater efforts were focused on the apparel and accessories segment than before. This is in line with the group's strategy of growing its apparel and accessories to 40 per cent of total revenue by end-2008, which is also underpinned by store upgrades and the opening of larger stores.

Relevance: This latest visit has reinforced our belief that China Hongxing continues to execute well on its distribution network expansion plans, which we believe will help consolidate its position as a top five domestic sports brand in China.

-Research Report by DBS Group (13 May)

Cosco 130508

Cosco today broke the uptrend support-turned-resistance (upp blue) today. However, it seems to be consolidating and also found temporary support at the 3.35 - 3.37 region.



Cosco also traded above the long term downtrend resistance (pink) today. If this support breaks, we might see Cosco testing the 3.26 support (blue ...) again.

For tomorrow :

Support @ 3.35 (pink), 3.26 (blue ...), 3.24 (low blue, low red)
Resistance @ 3.41 (mid red), 3.43 (upp blue), 3.48 (blue --), 3.51 (upp red)

Good Luck !!

BakerTech 130508

Baker Tech formed a Dragonfly Doji today. As the trend prior to today was a downtrend, the Dragonfly Doji could indicate a reversal.



Much would depend on whether BakerTech can open above the uptrend support (low blue), or at least close above today's 0.310 closing price.

You can see that the pattern over the last few trading days are similar to the pattern from 12 - 19 mar. We could still see Baker Tech testing the long term downtrend support (upp red) if it breaks the uptrend support (low blue, mid green).

For tomorrow :

Support @ 0.3088 (low blue), 0.3075 (mid green), 0.302 (upp red), 0.291 (low red)
Resistance @ 0.315 (pink --), 0.318 (upp blue), 0.322 (upp green), 0.325 (red --)

Good Luck !!

SGX 090508

After failing to break the 9.60 neckline (pink --) thrice, SGX weakened tremendously and has now broken the uptrend support (low blue), as well as the 8.95 neckline (red --).



SGX went on to test the long term downtrend support (upp pink) today, but managed to close right on the trendline.

If SGX breaks downtrend support (upp pink), we could see it testing the 8.24 support (green --).

Otherwise, next week could see SGX trading between the 8.95 neckline (red --) and the downtrend support (upp pink).

For monday :

Support @ 8.68 (upp pink), 8.24 (low pink, green --), 8.12 (low red)
Resistance @ 8.95 (red --), 9.08 (low blue), 9.27 (upp blue), 9.45 (upp red), 9.60 (pink --)

Good Luck !!

Semb Marine 090508

After testing the 3.88 support (pink ...) again on 6 may, Sembcorp Marine recovered and managed to trade above the uptrend resistance (upp blue) on 7 may.



Sembcorp Marine then went on to break several resistances and today, Sembcorp Marine broke the long term downtrend resistance (upp pink). Sembcorp Marine also managed to break the 4.05 neckline (pink --).

If Sembcorp Marine opens above the 4.05 neckline (pink --) on monday, and breaks the uptrend resistance (mid light blue), there's a good chance we might see Sembcorp Marine testing the 4.22 high hit on 22 apr.

If Sembcorp Marine opens below the 4.05 neckline (pink --), we might see it consolidating, supported by the downtrend support (low red).

For monday :

Support @ 4.05 (upp pink, pink --), 3.98 (low red), 3.95 (upp blue), 3.93 (low light blue)
Resistance @ 4.08 (mid light blue), 4.15 (upp light blue), 4.17 (upp red), 4.22

Good Luck !!

Olam 090508

After testing the 3.08 resistance (pink --) on 7 may, Olam softened and broke the uptrend support (mid green). Olam also broke the 2.93 support (blue --).



The chart shows that Olam just about stayed within the uptrend channel (green). We might also see Olam consolidating further along the the current levels.

If Olam breaks the uptrend support (low green), we might see it testing the 2.74 support (red --).

If Olam can continue to trade within the uptrend channel (green), and break the 2.93 neckline (blue --), we could see Olam attempting to test the 3.08 resistance again.

For monday :

Support @ 2.87 (low green, mid pink), 2.775 (low pink), 2.74 (red --)
Resistance @ 2.93 (blue --), 3.037 (mid green), 3.08 (pink --), 3.09 (upp pink), 3.16 (upp green)

Good Luck !!

Ferro China 090508

After testing the 1.74 resistance (red --) three times without any success, Ferro China softened today, probably from profit taking.



FerroChina came close to testing the downtrend support (low red) and uptrend support (mid light blue). If Ferro China breaks these 2 supports, we might see it testing the 1.57 support (blue --).

For monday :

Support @ 1.603 (mid light blue), 1.594 (low red), 1.57 (blue --), 1.55 (low pink), 1.50 (light blue --)

Resistance @ 1.706 (upp light blue), 1.725 (upp pink), 1.74 (upp red, red --)

Good Luck !!

Cosco 090508

Cosco looks to be consolidating this week, trading more or less within the 3.26 suport (blue ...) and 3.48 resistance (blue --).



From the chart, we can see that the long term downtrend resistance (pink), meets the uptrend support (green), at 3.40 next week.

If Cosco can trade above the 3.40 level next week, we might see it attempting to break the 3.48 resistance (blue --).

If Cosco fails to break the 3.40 level, we would most likely see Cosco consolidate at a lower level, nearer to the 3.26 support (blue ...).

For monday :

Support @ 3.274 (low red), 3.26 (blue...), 3.20 (low blue)
Resistance @ 3.40 (pink, green), 3.43 (mid red), 3.45 (upp blue), 3.48 (blue --), 3.53 (upp red)

Good Luck !!

China Milk 090508

The break above the 0.820 resistance (red --) was short-lived, as China Milk tumbled back down to earth, even breaking the uptrend support (upp blue).



China Milk is now trading quite close to the long term downtrend support (mid pink). If that support breaks, we might see China Milk testing the 0.740 support (red ...).

If China Milk can trade within the uptrend channel (blue), and above the uptrend support (low blue), there's a chance it might test the 0.820 resistance (red --) again next week.

For monday :

Support @ 0.790 (low blue), 0.775 (mid pink), 0.753 (low pink), 0.740 (red ...)
Resistance @ 0.800 (mid blue), 0.820 (upp blue, red --), 0.835 (red), 0.840 (4 mar, 9 may peak)

Good Luck !!

China Sky 090508

China Sky seems to have found temporary support at the 1.14 level (light blue --), which is also concurred by the volume distribution bars.



China Sky is still trading within the uptrend channel (green). We might see further consolidation, supported at 1.14, and if this support holds, we might see China Sky testing the short term downtrend resistance (upp pink) or even the uptrend resistance (upp green).

However, if the 1.14 support breaks, we might see China Sky testing the 1.10 support (green --).

For monday :

Support @ 1.14 (low green, light blue --), 1.10 (green --), 1.08 (low pink)
Resistance 1.16 (upp red), 1.188 (upp pink), 1.20 (upp green)

Good Luck !!