• Its uptrend since February appears to be over after last week’s shooting star pattern. Upside resistance at S$5.84 and S$6.27 is likely to cap gains.
• MACD is still positive but starting to lose momentum. RSI has hooked upwards again, suggesting that there could be a final leg upwards before this uptrend turns and heads lower.
• We would prefer to sell into strength as the shooting star pattern last week would likely induce further selling in the coming days. Support is seen at S$5.23 and S$4.84.
Venture offers high value-added and highly efficient manufacturing services to MNCs using state-of-the-art manufacturing process technology and test development capability. In addition, Venture provides an excellent range of premanufacturing services including design, prototyping and engineering services, as well as post-manufacturing services including after-sales repairs, customisation and fulfillment logistics.
Chartered Semiconductor (CSM SP; S$0.135) – BUY
• Chartered crossed its minor resistance last week and poised to see a tad more upside this week.
• However, looking at its indicators, the stock’s upside appears limited. The MACD is rising but remains in the negative territory while the RSI is also on the rise. A breakout above S$0.145 could see the stock rise up to test S$0.16 next.
• However, if it fails to clear the S$0.145 hurdle, sellers would likely come in droves. Avoid buying aggressively at current levels and keep a tight stop at S$0.12. Support is seen at S$0.125 and S$0.09.
Chartered is one of the world's leading semiconductor foundries. It provides comprehensive wafer fabrication services and technologies to semiconductor suppliers and systems companies.
Midas Holdings (MIDAS SP; S$0.515) – SELL
• Although the stock has broken out of its medium term downtrend channel lately, we are not convinced about the breakout. The candles lately suggest indecision around current levels. Only a close above the S$0.59 resistance would confirm the breakout run is underway.
• Indicators remained positive although there are signs of a slowdown in momentum.
• Investors should do well selling into strength for now, possibly near its resistances at S$0.54 and S$0.59. If the candlesticks fail to hold above the support trend line at S$0.47, expect further selldown towards the next support at S$0.425 and S$0.39.
Midas is a leading manufacturer of aluminium alloy extrusion products and polyethylene pipes, primarily for the transportation and infrastructure sectors in the People's Republic of China.
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