May 23-27, FA/TA for GoldenAgr

May 23, FA for GoldenAgri,

On the last blog, I have updated GoldenAgri has discounted NAV. Today, it is trading on par now at 0.709 with PE at 4.8X. If you compare GoldenAgri with its peer on NAV (1 vs 1.8) and PE (4.8 vs 12). It seems to be of great value. However, it has poor yield below inflation.

May 23-27, TA for GoldenAgri,

• Trend - Side trending (Trailing between 100D and 200D MA)
• Momentum - Overbought (confirmed by Stochastic)
• Resistance  (Classical) 0.73, (100D MA - 0.705)
• Support (Classical) - 0.68 (Resistance turn Support - a breakout)
• Volume - Above 20D average for the last 5 days.
• Candlestick - Spinning Top ( bearish reversal signal)

Last week, the trading momentum is generally flat. There isn't any stocks that can really break "Resistance turn Support" with above average volume. GoldenAgr - since last week is still a side trending side - even the MACD indicates a DOWN Trend, but from the above chart - you can see that it is a Side trending. Now, it has hit the

1. 100D MA- 0,705, 
2. near to its historical classical resistance of 0.72. 
3. Overbought
4. Spinning Top

From a TA prospective, indicators show strong bearish reversal signal. 

May 23-27, TA for STI

May 23-27, TA for STI Index

• Trend - Side Trending
• Momentum - Moderate at 40-60% for Stochastic and RSI
• Resistance - 3170 (still hold as of May16-20)
• Support - 3120 co-incide with 200D MA.
• Moving Average - Index are trailing along and above the 20D MA. 
• Pattern Formation - Ascending Triangle
• Candlestick - A inverted black Hammer (probability a bearish reversal) 

STI is trading sideway into a narrow band - as confirmed by indicators. There is a slightly improved on the volume traded as shown on the rectangle area. An interesting observation is the formation of a "ascending triangle" - this is a bullish signal, but it needs to break the 3170 and last historical 3200 - to confirm the "bull run". However, another important indicator is the 200D MA at 3120, once it hits or cross below it - there will be either a strong support or a strong sell down (as it confirmed a downtrend formation). This 200D MA is trader favourite MA to watch out.

The general indexes, we need to understand Performance Indexes among DJI, HSI and STI. All indexes - are entering flat or side trending. 

May18-20, TA for Wilmar

May 18-20, TA for Wilmar

Trend - Down Trend (confirmation by 200D MA, MACD -ve range)
Momentum - Overbought - 9D signal above 80%.
Resistance - 5.49
Support - 5.00
Volume - 1.2-2x above 20D MA
Candlesticks - 3 white soldiers.

Wilmar has been in a prolong period of down trending and from Trend indicators - it is still a Down Trend. However, last 3 days, this stock has strong volume and price movement. Now, it is hitting its classical resistance 5.50. This is the 4th times, it is testing it. Personally, this is a psychological level to be broken. Unless it is coupled with high volume (at least >1.3x), to break this line is seem too challenging.
So far, only 2 research houses indicate a BUY range at 6.12 and 4 indicate a HOLD.

May 18-20, TA for Hang Seng Index (Range Bound Trading)

May 18-20, TA for Hang Seng Index,

• Trending - Down (approaching 200D Moving Average and MACD in -ve range)
• Momentum - Oversold (confirmed by Stochastic at <20%)
• Support - 22,645
• Resistance - 24,412
• Volume - Volume decreasing
• Chart Pattern - Range Bound trading, see the nice support/resistance line.

Hang Seng Index is testing the important 200D MA and it's near to support of 22,645. From chart pattern, it seems to be trading is Range bound. But from the volume prospective, it is decreasing or below it average - sign of market weakening. Once the index moving below the 200D MA, it indicates a confirmation of Down trending. So I would look out for 3 signals - Price below 200D MA, Price break Support line 22,645 and decreasing Volume (near 1.5b). It's a sign of Down Trend confirmation. If you have LONG position, reduce it. Get Ready, your SHORT.