singapore trading blog

STI – Broken Below the 20 Days Moving Average

Kelwin & Roy STI, Straits times index , , , , , , , , ,
22nd March, 2017, 10:50 PM

STI – Broken Below the 20 Days Moving Average

The STI or straits times index has caught our attention because it has finally closed below the 20 days moving average.

From the chart we can see that the STI has stayed above the 20 days moving average for the last 3 months and even when it tried to break down it managed to rebound from it. But for today things look a little different. STI has finally closed below the 20MA hence we should take note of it.

It also coincides with our uptrend line and the horizontal support lines. With that we might be looking at further downside if those support breaks. The STI component stocks or blue chips would be the one leading the STI downwards so one can either short the STI or look for the component stocks to short.

We’re looking at the next support of around 3076 and will update further according to market condition. We’ll use poems CFD to short the straits time index.

Yours

Humbly

Kelwin&Roy

Keppel Corp – Down To Our Target, Rebound Next?

Kelwin & Roy Keppel Corp , , , , , , , , ,
16th March, 2017, 12:57 AM

Keppel Corp –  Down To Our Target, Rebound Next?Keppel Corp

Keppel Corp has been down for the last two weeks since we were blogged it .It was at $7.22 when we mentioned that it was a little high and needed to pull back. It has now reached our lower uptrend line and looks supported.

We’re hoping for it to have some rebound from here and if it doesn’t it could signal more downside .

Our upside entry would be at current spot price of around 6.65 with a stop loss of 6.53-6.55. Our first upside target might be 6.85

Some factors to take note would be oil prices. Oil has been falling for the last week and if it continues to fall then Keppel Corp might be dragged down.  The next factor would be the interest rate decision but more importantly janet yellen’s tone and speech going forward. The number of times interest rate will hike also will play a role.

So if our support breaks we might be prepared to go the other way.

Yours

Humbly

Kelwin&Roy

Property Cooling Measures Tweaked – What Shall We Do Next?

Kelwin & Roy Capitaland, Chip Eng Seng, Guocoland, Property Cooling Measures Tweaked, Wing Tai , , , , , , , , ,
12th March, 2017, 12:00 AM

Property Cooling Measures Tweaked – What Shall We Do Next?

On Friday just before noon, Singapore government announced some targeted tweaks to the property market cooling measures.

These are some of the main ones:

A reduction of existing  Seller’s Stamp Duty (SSD) rates for residential properties

  • Changes will see the SSD holding period cut from four years to three years
  • SSD rates will also be lowered by four percentage points for each tier
  • The rates apply to all homes bought on or after March 11

Current framework for the Total Debt Servicing Ratio (TDSR) will be relaxed. The 60% TDSR threshold will no longer apply to mortgage equity withdrawal loans with loan-tovalue ratios of 50% and below.

A new stamp Duty called the Additional Conveyance Duties (ACD) was introduced.

More of the tweaked cooling measures can be read here .

When the news was announced , you can just imagine what happened to our property counters in Singapore.

The FTSE ST Real Estate Holding and Development Index was up 2.5 per cent to 827.74 at 1.50pm.

CapitaLand jumped as much as 6.2 per cent to a high of S$3.79 each before closing at S$3.70, or a 3.6 per cent gain on the day.

City Developments shares soared to a high of S$10.59, or a 10.2 per cent rise, before ending with a 5.6 per cent gain at S$10.15.

Wing Tai was up 8.8 per cent to S$1.96 before closing at $1.935

It was a crazy afternoon instead and if you chased property counters immediately you would have some decent returns . We’ll just cover some counters over here and see how it plays out on monday.  News is out and now people are taking time to understand how much impact would this easing really be and could there be more easing coming along? Has the market overreacted on friday?  Did our property counters run before even the news came out?

We’ll take a look at a few charts and let you decide.

Capitaland 

cland

Capitaland resistance can be seen at 3.69-3.71 . If that breaks we could see potential upside to 3.90 . The swings could be wild as traders might be taking profit for those who bought earlier. Support or stop loss : 3.66 or 3.52

Wing Tai 

Wingtai

Wing tai surged a lot too and reached resistance too. Resistance at 1.935 then 1.96. If those break we might see $2 or even $2.06. The support would be 1.86 or the resistance turn support of 1.935. Always remember your stop loss.

Chip Eng Seng

CES

Chip Eng Seng closed above its previous day high of 0.745. If it manage to stay above that next potential target could be 0.765 then 0.78. The support is at 0.73.

Guocoland 

Guoc

Guocoland at least managed to break above it’s mid term downtrend line but couldn’t close above it horizontal resistance of 1.90. A close above that might see it move to 1.945 and if momentum continues could see it cover gap to 1.985. Support or stop loss would be 1.865.

Do remember your risk and comfort level in chasing or even shorting on monday. For those who prefer a little less volatility you could wait for the dust to settle before deciding on a direction .

Yours

Humbly

Kelwin&Roy

Keppel Corp – Oil Down So Is Keppel Corp

Kelwin & Roy Keppel Corp , , , , , , , , ,
9th March, 2017, 11:34 PM

Keppel Corp – Oil Down So Is Keppel CorpKC

Keppel Corp was a stock we blogged exactly a week back mentioning that it was high and needed a break. It hit our upper trend line and started to pull back. It was at around $7.22 when we spotted it and hit a day low of $6.77. A nice downside for a singapore blue chip. We hope our readers managed to benefit from our sharing once again.

So where to now as some of you have asked. The immediate support for Keppel Corp is around 6.76-6.78.It is also around the 20 days moving average.So it’s a double support for us.  If there is further weakness and breaking that support, we could see it hit our lower uptrend line of 6.65-6.70. Oil in the recent days have been taking a beating hence our oil related counters are not spared.

What could happen is that either Keppel Corp goes for a rebound and starts turning down and that’s where we would consider another short entry. Or if it breaks 6.76 then we might consider entry. Remember we’re using Poems CFD to hold our shorts and not naked short

Yours

Humbly

Kelwin&Roy.

Yoma Strategic- Broke Out and Up 8% Today

Kelwin & Roy Yoma Strategic , , , , , , ,
7th March, 2017, 11:33 PM

Yoma Strategic- Broke Out and Up 8% Todayyoma

Yoma Strategic had a powerful run today just as we posted last night. It was up 8% and retraced a little towards the end of day. We hope that our readers managed to benefit from this sharing and took home something.

Only selected mid cap stocks are in play and of course micro pennies. Good old values of slow and steady still hold true for us. =)

Many are asking what now and how now? We have drawn more lines for you all. It is currently testing 0.67 horizontal resistance and if that clears it could cover the gap and possibly reach 0.695.

Yoma Strategic had a long consolidation so we’re hoping for it to move more in the coming days . Our ultimate target would be the uptrend line and the horizontal resistance line of 0.745. Don’t forget to shift your stop loss up to protect your profits.

 

Yours

Humbly

Kelwin&Roy

Yoma Strategic – Breaking Out of Range?

Kelwin & Roy Yoma Strategic , , , , , , , ,
6th March, 2017, 10:35 PM

Yoma Strategic – Breaking Out of Range?yoma

Yoma Strategic a mid cap stock recently reported its results on 10th Feb which saw it moved down after their announcement. An interesting thing is that Yoma Strategic is still within its support range of 0.575.

From the chart  we can see that it’s been hovering from 0.575-0.615 range for the last 7 months or so. Today it had some movement up to 0.615 with an increased in volume. Yoma Strategic is currently in our watch list and if this counter manages to break out a this range convincingly we could see it march towards 0.64 then 0.67.

Our entry would be around 0.62-0.625 depending on how you see the breakout and it shouldn’t close below 0.615 for it to be a valid breakout.  Our stop loss would be 0.57.

For this counter we would use Poems CFD to enter as we might want to swing this position.

Yours

Humbly

Kelwin&Roy

Singapore Budget 2017 – What Now?

Kelwin & Roy Hock Lian Seng, ISO Team, Singapore Budget 2017, St Engineering , , , , , , , , ,
5th March, 2017, 9:33 PM

Singapore Budget 2017 was delivered by our Finance Minster Mr Heng Swee Keat  on Feb20 and we’ll just cover it briefly and what are some stocks that we are looking at. More can be read on the budget over here.

There were no major surprises for the Budget 2017 and some of the focus was on the smart Nation or digital economy, accelerating infrastructure projects and helping sectors facing cyclical headwinds.  Our markets didn’t react too much after the budget was announced so markets were not expecting too much to begin with.

With a 4.5 billion dollar programme to promote growth and competitiveness , the Committee on Future Economy (CFE) continues to emphasize the need to build skills and capabilities and to develop an innovative and connected economy. Digital Disruption continues to the buzz word and firm will have to adapt to that. St Engineering subsidiary St Eng Electronics could be a beneficiary of this as their Smart City solves city challenges and integrates systems that sustain future growth.

St Eng

Just some technical levels we’re looking at: 3.60-3.62 as the immediate support. If it breaks lower could see 3.45 levels in which we might consider entering. Currently its a little high now. Would prefer for a pull back .IF it breaks the 3.70 resistance we might see it eventually test 3.82.

 

Construction spending : The Singapore government will bring forward $700 million of spending  on public- sector projects in the next two fiscal years . Some firms we are looking at would be Hock Lian Seng which has jumped close to 10% since budget day. They boast over 45 years of experience in civil Engineering & Construction. They have been carrying out civil engineering works for bridges, expressways, tunnels and MRT with a few of these being awarded ‘construction excellence’

 

Hock lian

Hock lian seng hitting 60 cents which is the all time high. Some pullback would be good to levels  of 56 or 53 or even 50 cents and over there we might consider an entry. If it breaks 60 cents we might probably see 68 cents first. 

Another company we’re looking at would be ISO Team. Having been around for 19 years they are an established player in the building maintenance and estate upgrading industry in Singapore. They are also the exclusive applicator of paint works for both SKK and Nippon Paint in the public housing sector in Singapore. Major customers include town councils and government bodies.

Iso

Iso Team usually consolidate for awhile and breaks out then consolidate again. Would probably have to buy and hold rather then to time the break out. Around 0.375-0.395 would be a good be good entry point. If it goes lower then we’ll have to wait and see. 

The offshore and marine sector continue to remain weak and even with the foreign workers levy hike deferring for another year this will probably benefit SMEs a little more.Keppel Corp and Sembcorp Marine would be our picks for the O&M sector.

This is not all but of course as said we’ll briefly cover some points of the budget and do email us if you would like more ideas on the Singapore budget 2017.

Yours

Humbly

Kelwin&Roy

Sunpower- Anymore Power?

Kelwin & Roy Sunpower , , , , , , , ,
2nd March, 2017, 10:50 PM

Sunpower- Anymore Power?sunpower

Sunpower Group Ltd. is recognised as a specialist in the design and manufacture of such energy saving and environmental protection products .  If you’re interested you can find out more on their website.

It had a very powerful run and it seems resisted for now. Will it have more power to break that downtrend line? We’re hoping not yet. As you can see it’s currently also below the 10 days exponential moving average which is not a good sign. A good pullback would be healthy and we’re looking at a short entry around 0.795-0.805. We can place a stop loss at 0.835

We feel that the risk reward is not bad if Sunpower can move lower to 0.66 level Remember not to naked short but use Poems CFD(DMA) for shorting as this might take time to come down.

Yours

Humbly

Kelwin&Roy

Keppel Corp – Getting A Little High

Kelwin & Roy Keppel Corp , , , , , , , ,
2nd March, 2017, 10:18 PM

Keppel Corp – Getting A Little HighKC

Keppel Corp is a stock that we mentioned in our market outlook article back in January when it was around $6.20. It’s been a month plus and keppel Corp stands at $7.22 today. We feel that it’s reaching resistance for now and a pull back would be healthy.

We have drawn the uptrend channel line which acts as a resistance. A short entry could be around 7.23-7.25 area with  a tight stop loss around 7.28-7.30.

What might happen here could be that it might start pulling back from here or if market is still so bullish it could break out from this uptrend line we drew. We’re hoping for some pullback before we can make a re-entry.

Yours

Humbly

Kelwin&Roy

Alliance Mineral – Lithium Charged

Kelwin & Roy Alliance Mineral , , , , , , , ,
1st March, 2017, 11:37 PM

Alliance Mineral – Lithium Charged Allaince

Alliance Mineral was a stock we shared back in early January when it was around 0.096. It has since then ran up a lot to close at 21 cents.

Alliance Mineral does lithium mining and lithium has been in demand from usage in handphone batteries to batteries in electric cars. Recently Alliance Mineral has been running due to the recent finding in their western australian mine which is rich in lithium and tantalum having a significant value in today’s market. With Lithium being in demand this is one stock we want to look at for mid term .

We have drawn a few support and resistance zone The first resistance being 22 cents as it crossed 0.205 then after we might see 25 cents. We might want to look to enter on pullback and these are the support levels that we are seeing: 0.185 and0.167. This stock has crossed 20 cents so now each move up is significantly bigger so do take note of your risk.

Yours

Humbly

Kelwin&Roy