Monday, July 6, 2009

Genting: Stuck between S$0.67-S$0.70


Genting Singapore is likely to see more sideways trading in the near term.

The top is bounded by S$0.70 (30-day and 50-day moving average), ahead of S$0.72 (upper Bollinger Band).

The lower boundary is at S$0.67, provided by the centre of the Bollinger Band, which looks like a pretty firm support to us, as it has survived four tests over the last five sessions.

Below this, the next support is at S$0.66 (50% retracement of the rally from S$0.415 to S$0.91), ahead of S$0.63 (lower Bollinger Band) and S$0.60 (61.8% retracement of the same rally).

Suggested entry level would be between S$0.60 and S$0.63.

Though the daily MACD has recently cut up and the RSI is managed to stay above the 50% level, we note that the volume has dwindled quite substantially over the past few sessions.

This reinforces our view of more near-term sideways trading (with a slight downward bias).

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