• Yesterday’s steep pullback was close to testing its 23.6% FR at S$9.47. Watch out for this level, as a break down would have a catastrophic effect on the stock. If it fails to hold, the next downside target is weak at S$8.80 and S$8.07 (Mar lows).
• Only a claw back above yesterday’s high of S$10.12 would put a stop to this bloodbath. Judging from the chart, we still favour a sell into strength strategy. Next resistance is at S$10.34 and S$11.04.
• MACD is losing momentum while RSI has turned south again. The deteriorating technical landscape has also spilled over to the weekly chart, suggesting more room to the downside. Next support is S$8.82 and S$8.40.
United Overseas Bank Limited offers a full range of commercial banking and financial services. The Company offers private banking, trust services, venture capital investment, merchant banking, brokerage services, insurance, fund management, derivatives trading, precious metal trading, factoring, hire purchase, and life insurance.
Singapore Exchange (SGX SP; S$5.10) – SELL
• Although the stock has broken out of its medium term downtrend channel lately, we are not convinced with the breakout. If the candlesticks fail to hold above the support trend line at S$4.96, expect further selldown towards the next support at S$4.75 and S$4.64.
• Indicators are showing signs of bearishness. MACD is losing momentum while RSI has also hooked down.
• Investors should do well selling into strength for now, possibly near its resistances at S$5.35-S$5.47.
Singapore Exchange Limited owns and operates Singapore's Securities and derivatives exchange and their related clearing houses. The Company also provides ancillary securities processing and information technology services to participants in the financial sector.
City Developments (CIT SP; S$4.98) – SELL
• The stock is still languished in its medium term downtrend channel despite having bounced off its Mar lows of S$4.05. If it fails to penetrate above S$5.46 resistance over the next two days, chances are it will crack below the 30-day SMA at S$4.85.
• MACD is losing momentum. Meanwhile, the easing RSI indicator is also a reflection that buyers are losing steam.
• If the 30-day SMA fails to hold, we expect the stock to test the next support at S$4.61 and S$4.27. Sell into strength for now. However, any significant pullback towards the support zone may be an opportunity to accumulate.
City Developments Limited develops and owns properties. Through its subsidiaries, the Company owns and operates hotels, operates clubs, invests in properties and shares, manages properties and projects, as well as provides information technology and procurement services.
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