Thursday, March 12, 2009

Sell Hyflux, NOL, Keppel Land

Hyflux (HYF SP; S$1.40) – SELL

• The stock broke below its consolidation triangle and continued to fall to recent lows. The downtrend has not ended as it would likely test the S$1.21 and S$1.11 lows again before a bottom is formed.

• Technical readings on its indicators are negative but the oversold RSI may keep the stock steady for a little while longer.

• Any rebound should be seen as an opportunity to sell into strength. Resistance is at S$1.50 and S$1.64.

Hyflux is a water treatment specialist providing integrated treatment systems for advanced water treatment and membrane filtration. It also provides one-stop shop service for the design, fabrication, installation, commissioning and maintenance of treatment systems for water purification, wastewater treatment and water recycling.

Neptune Orient Lines (NOL SP; S$0.865) – SELL

• The stock broke below its trend line support from its Nov lows and has fallen to below its October lows. The downtrend does not appear to have run its course yet. Expect more downside from here.

• MACD and RSI have hooked downwards. Resistance is at S$0.93-0.94 and S$1.04. RSI is deeply oversold now.

• S$0.83 is likely the next level to be tested next followed by a minor rebound. There is also a chance that the stock could fall to S$0.75 but we would have to see if the S$0.83 support breaks. Maintain sell on strength. The next support is at S$0.66-0.68.

Neptune Orient Line’s principal activities include the owning and operating of vessels and participating in ventures with third parties in operations related to shipping; incidental to the Company’s principal activities is the disposal of certain fixed assets, including shipping-related equipment and vessels.

Keppel Land (KPLD SP; S$0.995) – SELL

• Broke below its consolidation descending triangle which suggests that there would be more weakness ahead. It could retest its 2002 lows at S$0.89 before bottoming out. It could even fall lower but we see some support around the 2002 lows.

• Daily MACD has confirmed its dead cross and continue to be negative while RSI is now oversold.

• A minor rebound could take place soon but the stock is still a sell on strength. Its tough resistance at S$1.30 is unlikely to be broken for now. S$1.13 is a minor resistance.

Keppel Land is the property arm of the Keppel Group, one of Singapore’s largest multinational groups with key businesses in offshore and marine, infrastructure, and property.

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