10th June 2009
The market continues its rally with no clear direction. The strong resistance at 2363.28 is once again tested this morning, but choppy. On the hindsight, it seems rather hard to hold, but we hold our reservations and will continue to observe further for confirmations. Short term traders – today is a bull day, as of 10.30am (Singapore time) Our Focus for today is on Commodity, Financial and Palm Oil Sectors Morning session indicates – Palm Oil sector promising, with special attention to Indo Agri. Currently, IFAR is consolidating, let’s wait for a setup to form to enter position. With respect to the financial sector, UOB outperforms, follow by DBS, and however OCBC is still lagging in the competition. UOB – our entry at 15.46, with an initial stop loss at 15.02. Trailing Stop Loss at 15.34, wait for a take profit level at 15.60 (conservative). With respect to the commodity sector, the leaders are performing strong. Expect good returns with normal risk per trade executed. Wilmar – our entry at 4.96, with initial stop loss at 4.74. Trailing Stop Loss at 4.84, re-adjusted to 4.98. Very good run for the day. Conservation Profit Taking at 5.29, Aggressive traders can look up to 5.71. Straits Asia – our entry at 1.78, with initial stop loss at 1.62. Wait for 1st profit taking at 1.94. Likely to run up to 2.07 Surprising, Olam outperformed towards the last hour of trading at 3.30pm, waiting a breakthrough at 2.37 Other entries include: KPLM – our entry at 7.16, with initial stop loss at 6.75. Trailing Stop Loss at 7.08. A good Take Profit Level at 7.42 Seems like indogri and noble are lagging behind. Let’s take a closer look at tomorrow’s market to see if they are going to join in the run. Overall, afternoon session gives telltales sign that market is going up, currently a short term trend. Market is likely to test the previous high of 2398.67. On current stand, market is likely to go up further. Reverse call – bull. Commodity Play will continue to stand up. All in all, Index Closed Positively at +43.18 at 2393.05. High of 2395.25 with a volume of 2.34 billion. Quick Picks: Here is a quick pick screen that we have designed to pick out potential stocks, both Bullish and Bearish. These are measured with emphasis on larger changes in price and volume. Bullish Stocks: Symbol Name 1 WLIL Wilmar International Ltd 2 CTDM City Development Limited 3 UOB United Overseas Bank Ltd 4 KPLM Keppel Corp Limited 5 STRL Straits Asia Resource Ltd 6 IFAR Indofood Agri Resources Ltd 7 DBSM DBS Group Holdings Ltd 8 OLAM Olam International Ltd
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