• It broke below its consolidation triangle and hit a low of S$0.985. It has since rebounded to retest the breakdown level of S$1.28. Again, there is a cluster of resistances around these levels. Its 30-day SMA is also at S$1.28.
• Daily MACD has confirmed its positive cross but the momentum is weak while RSI is still below the neutral mark. Note that the RSI is no longer oversold now, which suggests that there is room on the downside from here.
• The stock remains a sell on strength. Its tough resistance is at S$1.30 is unlikely to be broken now. It could retest its recent lows of S$0.985 again in the coming days. A break below it could see the stock fall to its 2002 lows at S$0.89 before bottoming out. Only a break above the S$1.42 levels would cancel this downside target.
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.
Fraser & Neave (FNN SP; S$2.17) – SELL
• The stock fell to a new 52-week low at S$1.85 before rebounding to retest the October lows at S$2.20. Again, the stock is now facing heavy resistances around these levels. Its 30-day SMA at S$2.40 would form the upper resistance level. A breakout above these levels would likely cancel out the downside targets.
• Indicators are mostly positive with only the RSI starting to hook down lower. This could be a sign pointing to weakness in the bulls. The longer term charts are still looking negative.
• Hence, this minor rebound should be seen as an opportunity to take profits. A reversal from here could see the stock fall back to close the gap at S$2.05- 2.07. Should the stock fall further below the gap, then it could easily retest the S$1.85 lows again.
Fraser and Neave is one of Southeast Asia's leading companies and its core businesses are the production and sale of soft drinks, beer & stout, dairy products; property investment and development and publishing and printing.
Suntec REIT (SUN SP; S$0.50) – SELL
• The stock hit a new all time low of S$0.495 yesterday but closed marginally higher. This new all time low suggests that the stock is technically weak. Avoid buying the stock until a short term bottom has been formed.
• The stock is still a Sell despite an oversold RSI. MACD has remained negative supports our view of selling on rebounds.
• It could continue to drift lower towards its next support levels at S$0.46 and S$0.42 next. Resistance is seen at S$0.55 and S$0.58. Continue to sell on rebound.
Suntec REIT owns prime office and retail space in the Central Business District of Singapore. Their portfolio was underpinned by a diversified pool of more than 411 retail and 124 office tenants as of 30 September 2007.
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