Monday, March 2, 2009

Sell Singtel, SembCorp Marine, Oceanus Group

Singapore Telecom (ST SP; S$2.46) – SELL

• The stock is facing some tough resistance in a form of its long term trend channel resistance at S$2.65 and S$2.80.

• MACD is about to turn negative again but its RSI has already hooked down, suggesting that the upside is likely capped.

• A breakdown below the S$2.40 support would be bearish for the stock. The following support is at S$2.18 and S$2.00. Maintain sell on rebound for now. Only if the price breaches the S$2.80 resistance would a turnaround be confirmed.

Singapore Telecommunications Limited operates and provides telecommunications system and services. The Company provides postal services, directory advertising and publishing. Singapore Telecommunications sells and maintains telecommunications equipment and provides mobile phone and paging service, computer network, and Internet and information technology services.


Sembcorp Marine (SMM SP; S$1.40) – SELL

• The stock broke below its consolidation triangle support in January and it has been trading sideways since then. A breakdown below the S$1.36 support could signal that the downtrend is about to resume. The next support is at S$1.15, its October lows.

• Indicators are looking negative as both indicators have started to hook downwards. It is also below its 30-day SMA.

• It is crucial for the stock to stay above the S$1.36 support. We prefer to be on the selling side with resistance at S$1.53-1.55 and S$1.83.

SembCorp Marine Limited operates ship building, ship owning, ship repair and conversion. Through its subsidiaries, the Company provides equipment rental, cleaning and maintenance services, marine, general electronic, and electrical works. SembCorp Marine also trades copper slag, processes copper slag for grit blasting and building, as well as fabricates metal structures.


Oceanus Group (OCNUS SP; S$0.125) – SELL

• The stock tried to take out its 30-day SMA in January and February but failed. That prompted selling pressure to rise sending the stock lower to current levels. It is likely to test its October lows of S$0.115 soon. A break below could see the stock fall to S$0.095-0.10.

• Indicators stayed negative. Its RSI have yet to fall into the oversold region suggesting that there is still room on the downside.

• Maintain sell call for now until a bottom has been formed. Until then, avoid buying. Resistance is seen at S$0.15-0.155

Oceanus Group Ltd is a marine aquaculture specialist focusing on large-scale, land-based, industrialized production and sale of Japanese abalones.

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