The Edge Hot Stock 14 Sept 2008

DBS- Poised for a breakdown
Hanging on the support now but likely break down by week below $17. Expanding volume indicating some big institutional player is selling out. Three times tested $16 provide temporary support.

UOB- Breaks support
Fell below key $18.50 level last week accompanied by a noticeable increase in volume. A downturn from equilibrium line is another negative signal. Immediate support is at $16, although the break points to a much lower target.

OCBC Banks- Technical Break
Has broken an important support at $7.90 and that indicates a target of $6.10, a level that looks quite attainable. As prices fell, volume expanded, an indication that selling is strong. Indications are suggesting that prices are likely to fall. ADX is rising from a low level and the DIs are negatively placed. However, short term stochastics is rising, suggesting that prices may attempt a bounce. Any such moves are temporary, and find resistance at the breakdown level of $8.20.

SGX- Oversold but drifting lower
Is probably the least negative-looking of the financial sector counters. That’s not to say it’s bullish. But, having more than halved in price since the start of the year, the rate of decline has slowed dramatically in the past two months. In fact, stochastics is rising, and RSI is attempting to rebound. ADX is still falling. In a better market, these could be construed as relatively positive signals. Not now, though. Watch for support at $5.90. A breakdown could set a strong decline in motion. Resistance for any rebound is at $6.30.

Great Eastern Holdings- Prices fall as volumes rise
Probably the endgame for the company’s minority shareholders as OCBC likely crossing 90% ownership soon. The fall in prices on what looks like a huge increase in volume is a negative sign techinically.

Hong Leong Finance- Holding on to support
Prices are within what looks like a base formation, except that the market for financial counters isn’t conductive to a recovery. Interestingly, volume surged, which could be a sign that prices are ready to move out of its sideways consolidation. The candlestick formation is that of a doji, which means prices could go either way. Support is at $3.16, a level that has been tested twice in the recent past.