Trading Note. SGX, Hyflux

Despite a strong close up by the S&P 500 on 18Mar09, the STI only managed to inch up slightly today. This is interpreted as a sign of weakness for the STI and we are thus looking for stocks displaying weak price action.


Hyflux, 1 hour Charts, 19 March 2009



Hyflux is beginning to slide off in today’s (19Mar09) trading despite the STI closing up slightly.

It has shown signs of a momentum divergence with stochastics, indicating that momentum was fading and price lacked internal 'push'.

We recommend shorting on tomorrow's open and taking profits at S$1.38. More aggressive investors might want to hold until S$1.34, the recent lows.


SGX, 1 hour Charts, 19 March 2009



SGX has consolidated over the week despite the generally bullish bias. This can be interpreted as a sign of weakness since it is not rising with the market's general bias.

It has tested the S$4.70 region, around the 200 period moving average once and has rebounded slightly. Support around the 200 period moving average should have been used up by now. One more push lower should take out the S$4.67 to S$4.70 region.

Stochastics has also dipped below 80, indicating that momentum has a downward bias as well.

We recommend shorting on a close at or below the $4.67 level. More aggressive investors can short at the open.

We also recommend shifting stops to breakeven/small profit, around $4.57.
Take profits around the S$4.46 to S$4.50 region.

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