Singapore Stock Market Updates On 19/02/10

Morning Highlights

The STI opens flat at 2772.03.

Genting Singapore saw its lowest close yesterday since August 28,  plunging 6.9% dod to $0.950. This is the third consecutive day the stock has fallen, taking its losses in the last three days to 12%. Though there is a buy opportunity based on the setups formed, we suggest to trade with small risk if it triggers.

• To Buy Genting Singapore at 0.94, Stop Loss at 0.895 and Take Profit at 0.985 (Small Risk) – Triggered

News Updates

1. The Federal Reserve Thursday announced a surprise hike in the interest rate it charges banks for emergency loans, increasing the so-called discount rate by 25 basis points to 0.75% and would take effect on Friday, February 19th.
2. U.S. stocks rose, capping the market’s biggest three-day rally since November, as reports bolstering confidence in the economic recovery overshadowed disappointing sales at Wal-Mart Stores Inc.
3. Wal-Mart, the world’s biggest retailer, slumped 1.1% as price cuts triggered a bigger-than-projected drop in comparable-store sales.

Afternoon Highlights

Our Quick Pick for Genting Singapore is triggered... We are currently queuing to close our position at 0.985. (still queuing)

Market has been hammered due to surprise rate hike from FED. It managed to stage a rebound during the last hour of trading. Short term support is seen at 2727.79 and short term resistance at 2797.

In Summary,

Market down 12.05 points to close at 2757.14, with 1.4053 billion traded.

This week is a a short trading week. In terms of weekly, market dropped 1.76 points with 4.1869 billion traded. Likely to see market continue with sideway consolidations before challenging 2800 again.

Seroja (Small Cap) is on our lookout list. This stock has moved 0.045 today with high volume.

Enjoy A Pleasant Weekend!!

STI Technical Analysis by Deutsche Bank AG

The STI resolved a bearish pennant consolidation pattern to the downside on Friday, triggering a continuation sell-signal. This breakdown suggests an extended mid-term correction taking place. The index could plunge towards a mid-term target zone at 2521-2600 in the coming weeks. After touching a low for the move at 2666 on Monday and reversing off that price level until the close,the index showed a sharp rebound up to the lower confine of the aforementioned pennant. The close at the session's high is positive and it remains to be seen if there is follow through to the upside in today's action. Resistance besides current levels is located at 2772. It takes a close above this solid barrier to negate the short-term downtrend and change the bias from bearish to neutral. Mid-term resistance is the declining 50-day moving average at 2822 and gap resistance at 2851. Support is seen at 2658/2666 and violation of that area would confirm the current downtrend.