Taurus Stock Pick : What Stocks to Buy in SIngapore ?

Jaya

Jaya has broken out of 70.5 cent and is now in pullback and consolidation. The second leg of run will start once 80.5 cents is broken. Refer to chart 2. The stock may pause at 85 cent due to a gap which may pose as resistance. If the stock manage to breakthrough the gap, we will be looking at 90 cents or 94 cents target (island which pose as resistance )

Sembcorp

Sembcorp is on the run with oil prices running high. From the chart, Semcorb has been trending nicely along the 13D MA as the support. A break above $4.33 would send the stock to next technical target of around $4.6. If not for the Goldman saga on last friday, the stock could have likely broken out of the box ( indicated in the chart).

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Ziwo

Technically Ziwo has been forming a ascending triangle for 2 months. and last week has been attempting to break 0.38.The inverted black hammer on Thursday doesnt bode well for next few session term due to the high volume. High volume and the stock cant breakout is not a good sign. Lets see if the stock would pullback to the triangle support line and retest 0.385 again.

TTJ

Stock is on the run and now consolidation. Expect more upside once 0.225 is broken. Volume dry up during consolidation.

DBS

DBS gap up on high volume and forms a long white candlestick yesterday. Today, DBS pulls back from resistance of $15.73. Once pullback completes, DBS will breakout from $15.73 with technical target of $17.4.
















OCBC

OCBC is fairly strong and has broken out of $9.09. Today's consolidation is a very strong bullish continuation pattern for OCBC to continue this leg up .















UOB

UOB has also been fairly strong and broken its Jan high yesterday. Expect strong continuation

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Wilmar is testing $7 resistance. If successfully break through, the stock will start a new leg of run to $8 given the current bullishness of STI. MACD is showing bullish signal and 13,26D is turning up.

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21st March Hot Stocks to buy - Guocoleisure

Watch out for Guocoleisure. One more upmove to around 74.5 cents before stock need to rest for the moving average to catch up.

21st March Hot Stocks to buy - Healthway

With the investment funds from IFC as well as aggressive expansion plans in China (target to open 6 medical centers in Shanghai in addition to the current existing two), Healthway is definitely a heathcare penny play that is not to be neglected. Technically, the short term shows a bullish ascending triangle to breakout of 0.185 cents. On the mid term horizon, we expect the stock to reach 24 cents which is its all time high. The stock has been consolidating in a rounding pattern ( refer to the long term chart )

20 March Straits Times Index

Straits Times Index has been bullish and extending its gains for almost two weeks after the gap up from 2795. The volume however is telling a different story as it has been steadily decreasing. Investors are cautious as the STI approached 2948 which is January high as it is unlikely that the index will break through in this round. Expect profit taking and the index to consolidate first.

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20 March Stocks to Buy - Hong Kong Land US$

Hong Kong Land displayed a bullish engulfing pattern on high volume following a XD day. Stock has tested the $4.9 to $5 leve since last Oct and i would expect the stock to break through $5 level soon and continue the next leg of rise. Hang Seng index has also been on positive trend following the recovery of the regional index from January low.

Hong Kong Land's all time high is $5.26. This breakout could be significant to bring HK Land to its all time high or higher.

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17 March : Singapore Bank stocks is on the run again !

OCBC is the strongest among the 3 bank stocks currently and leading the pack. It broke out from base of $8.67 is reaching overhead resistance of $9.1 which is previous high in Jan. Expect a pullback before it is able to breakout of $9.1 and continue the breakout run.














UOB broke through $18.86 with strong volume today. I expect the run to continue to reach $20.1 and stock should consolidate further here before breakout for the next run.















DBS seems to be the weakest among the 3 bank stocks from the chart patterns. Currently, it is testing $14.48 to breakout from the base. Overhead resistance is at $15.7.

But S'pore banks' long-term ratings still at risk due to overseas exposure

By CONRAD TAN

THE long-term credit ratings of the three Singapore-listed banks are still at risk despite the recovery of the economy, mainly due to the banks' large overseas exposure, rating agency Moody's said yesterday.

The outlook for the Singapore banking sector over the next 12-18 months is stable, but the outlook for the long-term credit ratings of all three Singapore banks is negative, Moody's Investors Service said in a new report.

Fourth-quarter earnings at DBS Group, OCBC Bank and United Overseas Bank exceeded analysts' expectations last month, boosted by a mix of trading gains and a steep drop in charges for bad loans as economic conditions improved. All three banks signalled improved earnings prospects for 2010 and a renewed push for loans growth.

The banks - each rated 'B' by Moody's - have been more resilient than some of their larger international rivals throughout the financial crisis and have maintained 'very liquid and well-capitalised balance sheets', Moody's said.

But 'all three banks also have significant exposure outside of Singapore - mostly in East Asia, but also in the other parts of the world', said Christine Kuo, a vice-president and senior analyst at Moody's in Singapore.

'Given their high ratings, Moody's would need to make sure their overseas operations also stabilise and their overall performance is consistent with that of their similarly rated peers before the rating outlook can be revised back to stable.'

The report also highlights the Singapore banks' large exposure to the property sector as a risk.

'We are wary of the negative impact a return of inflationary pressures could bring to banks' asset quality, as the pace of recovery picks up in the regional economies over the next 12-18 months,' Moody's said.

'Developers and construction firms will become financially weaker if they cannot pass on the increase in construction and financing costs resulting from asset price and monetary policy adjustments. Consumer demand may also soften because of rising mortgage rates. These risks, should they materialise, could lead to a down-cycle for the property market.'

If that happens, it could hurt demand for new housing loans - which make up about a quarter of the Singapore banks' loan books - and require the banks to set aside more allowances for bad loans, reducing their earnings.

Overall, however, the ongoing economic recovery in Singapore and elsewhere means better prospects for the banks, Moody's said, with demand for loans and trade financing expected to rise in the coming months, even as bad-loan charges fall.

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17 March Hot Stock Pick - TianjinZ

TianjinZ

Watch out for TianJin to continue the uptrend and break $1.25. Today gap up on increased volume the price increased is 6%. Stock breakthrough $1.17 with a long inverted hammer candlestick. Stock may move up one more day or pullback. Monitor the volume on pullback and wait for setup to enter. The 13,26D MA need to turn up before stock can run. Else the stock price will be overextended. Technical target should be $1.35 to $1.4.

16 March Hot Stock Picks - Breaktalk

Image via Wikipedia

Breadtalk is another hot stock which has been climbing steadily from last Nov to a high of 75 cents. For 2 months, it has been consolidating and now, as we approach the tip of the flag triangle, i would expect Breadtalk to breakout anytime soon. 71 cent is the first resistance for breakout after which traders have to take care of 75 cents resistance which is the high of Dec 2009. The major flag pole formation should take the stock to 90 cents based on technical chart target of a flag breakout.

15 March Stocks to buy - Hyflux

Hyflux has been awarded a $43.8 million contract by Tuas Power Unit to undertake EPC work for Tembusu Seawater desalination Plant on Jurong Island. As of Dec 2009, Hyflux order book is already $1,848 million and the latest win just adds on to the current order book.

Technically, stock need to break $3.66 to reach $4.0. This consolidation zone has been developed since Jan till now for 2 mths. A break above $3.66 would be bullish for the next run.

15th March Stocks to buy - Indoagri

Palm Oil stock has been on move lead by Wilmar in this sector. Indoagri has broken out of $2.18 on high volume. The last two days of contraction on low volume is a bullish sign especially when the two contraction candlesticks closed off its day low. This is a reversal stock that traders can trade to $2.55 which is the next resistance.

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14 March : Straits Times Index Chart

Straits Times Index has developed into a upchannel since the reversal started on 8th Feb (Refer to channel lines in the chart.) MACD and RSI has been pointing to a upward inbound trend as evident from the overbought RSI. However, two things to take note is that the STI volume is decreasing and the candlestick for last few sessions points has been a short range Doji and spinning tops. This indicates a decline in momentum. Also the index is approaching the 2898 to 2944 zone which would pose a resistance to the index. Hence, expect the index to take a breather from here if it is to break above Jan 2010 high.

Generally, most of the stocks have reversed the trend and some stronger stocks have actually broken out of consolidation zone and make a new high. This is positive development and we expect that should the index hold well, the rest of the laggard stocks will continue to breakout to find new high.

For regional market index and Dow Jones Index analysis, pls refer to affliate site stocktradezone.com for weekly Index update.

14 March : Stocks to buy - Z-obee

Z-obee

This is another hot stock pick for weeks coming ahead. From the technical chart, Z-obee looks like it is going to form a ascending triangle with breakout point around 40-41 cents. Take note that 40 cents level has been tested 2 times from past few months stock market action. Once 40 cent is broken, Z-obee will start next leg of advance.


On the longer horizon, ( refer to weekly chart below ), the stock has broken all time high of 31.5 cents and this means that technically, Z-obee will face less resistance in the price movement upwards technically.

13 March : Stocks to Buy - Pacific Andes

Pacific Andes

Hot Stock Picks for Monday 15th March is Pacific Andes. Ascending Triangle formation currently. Trade Breakout to 37 cents. My view is that 37 cents may not be breached on this round so probably have to wait for market to digest sellers around 37 cents first before another breakout.