Technical Analysis
STI, Wilmar, Cosco, Straits Asia Resources, Yangzijiang
STI Weekly
The STI has continued its downtrend and closed below its March 2008 low. It has
also tested and closed strongly below its 200 week moving average indicating a
continuation of the downtrend. The next support level would be at the 2400 level
(psychological round number) and 2317 (August 2005 high) that might coincide with
the median trend line (pse see chart label). The confluence of a support level with the
median trend line should give the STI a good degree of support.
Wilmar, Weekly
Wilmar has been trending down strongly in the weekly charts. It is now trading very
near S$2.990, its January 2007 high. Next support levels are S$2.670 (August 2007
low) and S$2.160 (April 2006 high, March 2007 low). S$2.160 should hold as a
significant support level as it is the April 2006 high and the March 2007 low.
Wilmar, Daily
In the daily charts, Wilmar is in a clearly defined downward channel and should
continue heading lower with downward momentum. This will hold until price rebounds
and closes strongly above the upper trend line of the channel. We advise readers to
avoid buying and to maintain a short bias should they decide to trade Wilmar.
Cosco Weekly
Cosco topped out in October 2007 and has been in a downtrend since. It has tested
and broken its Fibonacci 2.618 extension target and is moving lower. The next level
of support is at S$1.320, the September 2005 high and subsequently S$1.000, the
October 2005 low. The S$1.000 level is the "penny stock line" and is a critical
psychological level. It would not bode well for Cosco if it closes below S$1.000.
Straits Asia Resources, Weekly
Straits Asia closed below the critical S$2.300 (Jan2008 low) level two weeks back
and broke sharply to S$1.68 (June2007 high) where it is currently finding support.
The next level of support is S$1.31 (May2007 high). Similar to Cosco, the S$1.00
level is critical support.
Yangzijiang, Weekly
Yangzijiang has closed below its IPO price of S$0.95 and has since continued to drift
lower to S$0.530 as of this report. Interest in the stock has dwindled and we advise
that readers stay out. Resistance is S$0.78 (March 2007 low) and IPO price S$0.950.
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