• The stock has bottomed out in early Mar-09 and the breakout above its 30-day SMA is also positive. We expect it to re-test the trend line resistance at S$2.45 again but sellers are equally strong.
• Indicators continue to show signs of bullishness. MACD is still positive while the RSI has turned upward again. This should pave way for more room to the upside. Next resistance is seen at S$2.54 and S$2.62.
• Investors should accumulate during technical pullbacks as we fear that sellers at S$2.45 may cap near term gains. Initial support is at S$2.20 followed by S$2.07 (also its 30-day SMA). Cut losses if it inches below S$ 2.00.
CapitaLand Limited and its subsidiaries operate in residential and commercial properties, property fund management, and serviced residences. The Company also manages other properties.
Sino-Environment Technology (SINE SP; S$0.155) – BUY
• The recent pullbacks draw concern about the sustainability of its uptrend. However, yesterday’s spike up suggests that its recovery is still pretty much in place.
• Bullish divergence is seen on its MACD indicator. Also, RSI has turned upward again. There is a high possibility that it will retest the S$0.175 and S$0.21resistances soon. A successful breakout from its trend line resistance would result in gap-filling activities at S$0.295.
• Only aggressive investors should look at this stock. The bears may still hit the stock on strong rally. Support is at S$0.13. Buy on weakness. Cut loss point at S$0.125.
Sino-Environment Technology Group Ltd. offers industrial and municipal waste treatment services. The Company treats and manages industrial waste gas and industrial and municipal wastewater.
China Essence Group (CESS SP; S$0.095) – SELL
• The stock is still entrenched in its long-term downtrend channel. Having closed at a new 52-week low of S$0.095, it reflects that there is still room to the downside. Next support is weak at S$0.07 and S$0.055.
• Indicators are still weak. MACD dips further into the negative territory while RSI cuts into the oversold zone. Buyers are weak as the candlesticks deviate from the 30-day SMA.
• Investors should do well selling into strength, possibly near the resistance at S$0.12. Avoid this stock until a base-building formation is seen.
China Essence Group Ltd. processes potatoes. The Company produces potato starch, and potato starch-based products including vermicelli, five-grain noodles, and starch strips.
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