Celestial Nutrifoods - Bearish shooting star pattern suggests more near term downside

- Celestial Nutrifoods is likely to face further correction pressure in the nearterm following the formation of a bearish shooting star pattern just underthe 1-year downtrend line and key support-turned-resistance level.

- With the RSI and Stochastic indicators on the verge of falling out of theoverbought region, coupled with bearish divergence signals generated withreference to the price action over the last month, this seems to suggestthat there could be more room for correction in the days ahead.

- We expect the correction to find an initial support at $0.195 (resistance-turned-support level), failing which, we see the next support at $0.165 (2-month uptrend support line)

- Immediate resistance is pegged at $0.275 (key support-turned-resistancelevel), ahead of $0.345 (support-turned-resistance level).

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Celestial - high chance of breakdown

Celestial=$0.135 (Likelhood of breakdown at $0.135 is vey High....target=$0.12)

Celestial and Hongguo both crossing yellow line

Celestial=$0.12. Greenline crossing yellowline.


Hongguo=$0.14. Greenline crossing yellowline...resistance at $0.16.

Sell Celestial, Delong; Buy Venture

Celestial Nutrifoods (CENU SP; S$0.17) – SELL

• The stock broke below its October lows of S$0.275 (now the resistance) and continued to fall to current levels. The stock might see some support around the S$0.15-0.16 levels.

• Indicators are weakening but RSI is now oversold. The oversold RSI could prompt a minor rebound soon with resistance at S$0.225.

• Despite the oversold RSI, we expect the stock to continue to edge lower after the rebound. It could even fall to S$0.12 in the longer term.

Celestial NutriFoods Limited manufactures and sells soybean based food products such as soybean beverages, soy protein isolate and soybean oil. The company sells its products under Sun Moon Star brand name.

Delong Holdings (DLNG SP; S$0.59) – SELL

• The stock has fallen from a high of S$3.65 to current levels. It appears to be forming a base but there are no signs that a rally is forthcoming. Sell for now.

• Both MACD and RSI have turned negative again, suggesting that the selling momentum could be picking up once more.

• Resistance is seen at S$0.64 while support is S$0.56. A break below S$0.56 would signal that more downside is likely.

Delong Holdings Limited manufactures and trades in steel. The Company specializes in the manufacture of hot-rolled mid-width steel coils. Through its subsidiary, the Group also invests in resource and other steel-related businesses.

Venture Corp (VMS SP; S$4.82) – BUY

• After failing to breakout above its 30-day SMA in the last 3 months, we expected the stock to fall further. But the bulls had a final say and managed to give it a strong push. The breakout led to a strong rally to current levels.

• Technical indicators have improved suggesting that more upside is likely. However, with the RSI in an overbought position, a pullback is likely.

• Investors could do well accumulating on weakness. Support is at S$4.76 and S$4.42. Get out if the stock falls back below its 30-day SMA. Resistance is at S$5.46.

Venture Corporation Limited provides contract manufacturing services to electronics companies worldwide. The Company also provides manufacturing, design, engineering, customization, and logistic services. Venture Corporation trades and manufactures electronics and computer-related products, develops and markets colour imaging products for label printing.