STI chart as of 13 Jan 17

Ernest’s market outlook (13 Jan 17)

Dear all, STI performs to my expectations as it heads towards 3,040 (my eventual technical measured target price which I mentioned previously). What’s next? For the charts analysis below, you can cross – reference to my market outlook sent on 6 Jan 17 HERE. (Actually, my bi weekly market update should be done next week. However, I noticed that the market seems to be reaching some near-term potential resistances. Hence, I decided to do a market update. Due to time constraints, I did not put in Hang Seng analysis for this issue)   S&P500 Based on Chart 1 below, it […]

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ISOTeam on the verge of a potential bullish chart breakout (9 Jan 2017)

ISOTeam recently caught my attention with a surge in price, accompanied with volume. Based on Chart 1 below, ISOTeam has been trading in a tight range of $0.375 – 0.405 since 30 Aug 2016. ISOTeam closed unchanged at $0.395 on 9 Jan 2017. All the exponential moving averages (“EMAs”) are turning higher with 20D EMA on the verge of forming a golden cross with 50D EMA. Amid positive placed DIs, ADX has turned higher from 17 on 27 Dec 2016 to 30 on 9 Jan 2017, indicative of a trend. OBV has strengthened, together with other indicators such as RSI […]

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Ernest’s market outlook (6 Jan 2017)

Dear readers, Two weeks ago, I mentioned that although Hang Seng is in a downtrend, it may rebound as oversold pressures build. Hang Seng jumped 928 points in the past two weeks. What lies ahead?   S&P500 Index Just to recap what I have mentioned on 23 Dec 2016 (see HERE), I wrote “S&P500 is consolidating its gains for the past two weeks. It continues to be on a clear uptrend amid rising exponential moving averages (“EMAs”). ADX continues to rise from 36 on 9 Dec 2016 to 39 on 23 Dec 2016 on the backdrop of positive placed directional […]

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Sapphire – disposal of Mancala, implications and updates (30 Dec 16)

On the last trading day of the year, Sapphire Corp announced that it has entered into conditional sale and purchase agreements (collectively, the “SPAs”) with each of China Vanadium Titano-Magnetite Mining Company Limited (“CVT”) and Toe Teow Heng (“TTH”) relating to its mining services business, Mancala. Is this a positive or negative development? What are the implications? Let’s take a closer look.   Disposal of Mancala and its implications Subject to the terms and conditions of the SPAs, CVT and TTH have agreed to acquire 49% and 32% of the issued and paid up capital of Mancala Holdings for a […]

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CWG chart looks strong, despite price consolidation (27 Dec 16)

CWG International Limited (“CWG”), former Chiwayland, closed unchanged at $0.156 on 27 Dec 16. Based on Chart 1 below, notwithstanding the recent price consolidation, all its exponential moving averages (“EMAs”) are still rising strongly, indicative of an uptrend. OBV is at elevated levels despite the price consolidation (i.e bullish). Amid positively place directional indicators, ADX is around 25, indicative of a trend. RSI closed at 56. Although the usual benchmark for RSI’s overbought level is around 70, it is noteworthy based on historical records, its RSI can reach 90 before profit taking occurs. All in, the chart looks positive. A […]

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Ernest’s market outlook (23 Dec 16)

Dear readers, Two weeks ago, I mentioned that there is likely to be profit taking on the STI. STI has since fallen 85 points, or 2.9%. What lies ahead?   S&P500 Index Just to recap what I have mentioned on 9 Dec 2016 (see HERE), I wrote “S&P500 is on a clear uptrend amid rising EMAs and ADX, on the backdrop of positive placed directional indicators (“DIs”). RSI closed around 77 on 9 Dec 2016. This is overbought and at a 3-year high. Indicators such as OBV, MACD and MFI continue to exhibit bearish divergence with price. Although bearish divergences […]

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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 […]

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Ernest’s market outlook (25 Nov 16)

Dear readers, S&P500 hits record high! Will STI follow suit? Read on for more.   S&P500 Index Just to recap what I have mentioned on 11 Nov 2016 (see HERE), I wrote “S&P500, after closing below its 100D exponential moving average (“EMA”) for six consecutive days, surged with volume and closed above its 100D EMA (currently 2,137) for five consecutive days. 21D EMA has just formed a golden cross with 50D EMA on 10 Nov 2016. Another positive feature is that the directional indicators (“DIs”) have turned positive with ADX closing at 28. S&P500 has closed above 2,157 for three […]

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GSS Energy – Roller coaster share price, what’s up? (28 Nov 16)

Since my write-up on GSS Energy (“GSS”) dated 10 Oct 2016 (see HERE), GSS shares have surged 34% from $0.080 on 10 Oct 2016 to an intraday high of $0.107 on 13 Oct 2016. It subsequently fell to an intraday low of $0.070 on 21 Nov 2016 before closing at $0.078 on 28 Nov 2016. What has changed in the previous few weeks to fuel such a roller coaster movement in its share price? I have listed some of their key announcements announced during the period below. 1. Formally signed contract with Pertamina On 3 Nov 2016, GSS, through its […]

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Starhub – all time oversold, price near five year low (22 Nov 16)

Starhub has plunged 30.3% from an intraday high of $3.96 on 3 Aug 2016 to trade $2.76 today. This is near a five year low.   What has caused the sharp fall in Starhub? Some of the possible reasons may be 1. Market is pricing almost a 100% chance of a rate hike in Dec. Furthermore, there seems to be rising interest rate expectations on faster than expected tightening in 2017; 2. After IDA’s announcement on 16 Nov 2016 that MyRepublic and Australian telco TPG Telecom will get to participate in the 4G mobile airwave auction slated to complete by […]