Straits Times Index
STI Weekly, Cosco, Straits Asia Resources, Daily, Wilmar, Daily
STI Weekly
The STI is still clearly trending downward in the weekly charts despite last quarter's
rally. The point here is to establish that currently, there is a downward bias to the
market. Key support levels within range are the 2746 March low and the previous
March high in year 2005, at the 2600 level.
STI Daily
For the daily charts, the STI is trending downwards consistently, respecting the upper
boundary of the Andrew's Pitchfork from the weekly chart. It is gravitating towards
2746, which is significant support. We should expect some reaction by the market at
that level. The 200week moving average is trading near the 2746 level and would
give added strength to 2746.
Cosco:
Cosco has topped out since October 2007. It has tested the initial Fibonacci
extension 2.618 target (extension lines are on the right) and broken sharply lower in
the past 2 weeks. The next Fibonacci extension target is 1.76; If price does reach
there, it should find some measure of support.
Straits Asia Resources, Daily
Straits Asia Resources has broken its 200 day moving average, the "official" dividing
line between a bull and bear stock. It is currently testing its January low of 2.35.
Should it close decisively below this low, we can expect a sharp drop. It should react
to the upside along with the rest of the stocks when the STI tests its 2746 low, so
watch what the STI is doing as well.
Wilmar, Daily
Wilmar is trading in a clear descending channel. It broke sharply below its 200 day
moving average, indicating enthusiastic selling. The bias is clearly towards the bear
side as of now. Wilmar should find some support around the 3.78 and strong support
between 3.37 and 3.53 - the intraday low and closing low in March. Wilmar, being a
constituent stock of the STI will also find support when the STI tries the 2746 level;
be watchful for a bounce around those levels.
DISCLAIMER:
The information contained in this publication has been obtained from public sources which Phillip Securities Research has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the "Research") contained in this publication are based on such information and are expressions of belief only. Phillip Securities Research has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in this publication is subject to change, and Phillip Securities Research shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will Phillip Securities Research be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages.
Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this material are as of the date indicated and are subject to change at any time without prior notice.
This material is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The products mentioned in this material may not be suitable for all investors and a person receiving or reading this material should seek advice from a financial adviser regarding the suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of that person, before making a commitment to invest in any of such products.
This publication should not be relied upon as authoritative without further being subject to the recipient's own independent verification and exercise of judgment. The fact that this publication has been made available constitutes neither a recommendation to enter into a particular transaction nor a representation that any product described in this material is suitable or appropriate for the recipient. Recipients should be aware that many of the products which may be described in this publication involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.
Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of a security. Any decision to purchase securities mentioned in this research should take into account existing public information, including any registered prospectus in respect of such security.
© 2006 Phillip Securities Research Private Limited
|
Up to-date current Financial News for Investors
