• The stock broke below its consolidation triangle and continued to fall to recent lows. Yesterday’s sharp fall as formed a bearish engulfing candle on its daily chart. The downtrend would likely continue with a test of S$1.34 and S$1.21 support again before a bottom is formed.
• Technical readings on its indicators are mild positive and losing momentum. The RSI is no longer oversold, suggesting that the stock could still fall from here.
• 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.
SembCorp Industries (SCI SP; S$2.07) – SELL
• The stock appears to be well support above the S$2.00 support. It is now forming a descending triangle. A break below the S$2.00 support is bearish.
• Indicators are mixed at the moment but the sharp hook down on its RSI is slightly bearish for the stock.
• Falling below its 30-day SMA is also another bearish signal. Maintain a sell on strength strategy for now with the next support at S$1.70 if the S$2.00 support fails. Resistance is at S$2.25 and S$2.41.
SembCorp Industries’ principal activities are those of an investment holding company, as well as the corporate headquarters, which gives strategic direction and provides management services to its subsidiaries.
Singapore Exchange (SGX SP; S$4.70) – SELL
• The stock has rebounded from a low of S$4.00 to current levels. It tested its strong resistance at S$4.90-5.00 but failed to breakout. It is now sitting just above its 30-day SMA.
• MACD has stayed positive but the RSI is slowly turning down again. If the stock can hold above its 30-day SMA, then we could see a retest of its strong resistance at the S%5.00 levels.
• However, a break below the S$4.67 level could send the stock lower S$4.48 and S$4.30. Since the longer term trend is still down, we prefer to sell on strength for now.
SGX owns and operates the only integrated securities exchange and derivatives exchange in Singapore and their related clearing houses. The securities exchange was the first fully electronic and floorless exchange in Asia.
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