Table 1_Stock price performance for some tech stocks

Frencken nears 14Y overbought RSI level amid 10Y high prices (19 Nov 2019)

This week, Frencken has caught my attention with its 34% surge from $0.690 on 31 Oct 2019. It closed $0.925 on 19 Nov 2019. At $0.925, this is very near to its 10-year high closing price $0.930 set on 18 Nov 2019. Since 31 Oct 2019, it has risen 10 out of the past 13 trading days with two days having closed unchanged. RSI closed at 88.1 on 19 Nov 2019, which is near a 14 year overbought level. Based on Frencken’s chart, it seems to present a favourable risk to reward short trade. Please see the basis and more […]

Analyst target price 29 Oct 19

Hi-P – bearish engulfing candle forms after rising for 12 out of 15 days (29 Oct 2019)

This week, Hi-P has caught my attention with its 33% surge from the intra-day low of $1.13 on 7 Oct 2019 to trade to an intra-day high of $1.50 on 29 Oct 2019. In addition, it has risen 12 out the past 15 trading days with RSI touching a recent high of 81.8 on 25 Oct 2019. Based on Hi-P’s chart, it seems to present a favourable risk to reward short trade. Please see the basis and more importantly, the risks.   Basis a) Hi-P trades above the higher analyst target price $1.32 Average analyst target price for Hi-P is […]

qualcom 10Y PEBD

Qualcomm – extremely overbought after a 74% rally within 3 months! (23 Apr 19)

Dear readers, This week, Qualcomm caught my attention as it has appreciated approximately 74% from US$49.10 to trade at US$85.62 in less than 3 months. This is due in part to the favourable announcement that Qualcomm and Apple have reached a multi-year settlement agreement (click HERE for more information)   Why is it interesting? Personally, I think Qualcomm may be a potential short target with a favourable risk to reward proposition with a take profit of a few bids, base mainly on a technical perspective.   Basis to short a) With reference to Chart 1 below, Qualcomm is on a […]

Chip analyst target 1 Apr 19

Chipotle Mexican Grill reaches all time overbought after an 84% rally in less than 4 months! (1 Apr 19)

Dear readers, This week, Chipotle Mexican Grill (“Chip”) has caught my attention with its blistering 84% surge since 24 Dec 2018 and its US$100 rally in the past 16 trading days.   First, what does Chip do? Based on Chip’s company website (click HERE), it is an American chain of fast casual restaurants and has nearly 2,500 restaurants as of 31 Dec 2018 in the U.S., Canada, France, Germany and UK. It is the only restaurant company of its size that owns and operates all its restaurants. Its market capitalisation amounts to US$19.6b.   Why is it interesting? Personally, I think […]

Table 1_Top five stocks with the highest estimated total potential returns 30 May 18

STI slumps 198 points after hitting a decade high of 3,642 on 2 May! (30 May 18)

With reference to my market outlook HERE posted on 11 May 2018, I mentioned at that time that I have started to sell into strength, as I am cautious on the overall market. Clients would have been aware / notified that I have already reduced my percentage invested to <60% early last week. STI has since dropped 126 points from 3,570 on 11 May 2018 to close 3,444 on 30 May 2018. For those who wish to accumulate on weakness, I have compiled a list of stocks here, using Bloomberg’s data as of 30 May 2018. The criteria for compilation […]

STI chart as of 27 Oct 17

Ernest’s market opinion (27 Oct 17)

Dear all STI has closed at 3,386, a fresh 29-month high. Some of you who have been less than 30% invested in their portfolios and have not added more exposure in their equities portfolio last month are wondering whether you have missed out of the rally. Should you continue to chase this? Read on for more.   S&P500 last closed 2,581 S&P500 is on a strong uptrend with all the exponential moving average (“EMA”) trending higher. ADX closed at 29.3, amid positively placed DIs, indicative of a trend. RSI closed at 70.7. This is not extremely overbought, relative to past […]

Sunpower chart as of 8 Feb 17

Chart highlights on Midas, Sapphire, Sunpower, Terratech (9 Feb 17)

Dear readers, The animal spirits seem to have finally descended on our Singapore market! Our STI is one of the best performing indices with a blistering 6.4% year to date return. Our FSTS ST Small Cap Index has returned 3.8% year to date. I have highlighted four charts which (I feel) deserve attention. Do note the caveats below.   Midas With reference to my write-up on Midas dated 3 Feb 17 (click HERE), Midas’ inverse head and shoulders pattern seems to be confirmed with the decisive upside break above its 200D exponential moving average (“EMA”) and neckline of around $0.230 […]

Top 5 stocks sorted by highest RSI Bloomberg 27 Jan 17

Ernest’s market outlook (27 Jan 17)

Dear all, Happy Chinese New Year! How is your Rooster Year so far? S&P500 and STI reached near, or at my near-term resistances. What’s next?   S&P500 Just to recap what I have mentioned on 13 Jan 2017 (see HERE), I wrote “It is clear that S&P500 continues to on an uptrend amid rising EMAs. S&P500 closed at 2,275 on 13 Jan 2017. Since 8 Dec 2016, S&P500 has been consolidating between 2,238 – 2,278 and it seems to be staging an upside breakout. A sustained break above 2,278 / below 2,238 points to an eventual measured technical target 2,318 […]

s500-financials-index-dec-16

Ernest’s market outlook (9 Dec 16)

Dear readers, STI has hit highs last seen on Apr and Jul 2016, powered by our local banks. Can this sustain? Read on for more.   S&P500 Index Just to recap what I have mentioned on 25 Nov 2016 (see HERE), I wrote “S&P500 is on a clear uptrend. All the exponential moving averages (“EMAs”) are rising with 21D EMA forming golden cross with 50D EMA on 10 Nov 2016. Amid positive placed directional indicators (“DIs”), ADX continues to move higher from 28 on 11 Nov 2016 to 31 on 25 Nov 2016. It is noteworthy that indicators such as […]

banks-valuation-1-dec-16

DBS – hits 52-week high, all-time overbought since 1991! (1 Dec 16)

DBS hit another 52-week high today. It has surged 19% from an intraday low of $14.97 on 9 Nov 2016 to $17.82 on 1 Dec 2016. This has significantly outperformed the STI by a mile, as STI was only higher by 6.0% over the same period.   What has caused the sharp rally in DBS? Some of the possible reasons may be 1. Since Donald Trump’s victory, the market has repriced in faster inflation in the U.S. due to Mr Trump’s infrastructure pledge. This has caused a surge in US Dollar and bond yields, especially on longer-dated debt. This bodes […]