Doing some chart reading on SGX stocks.
I will be looking at COSCO Corp and NOL, and will start off from the mother of all SG stocks.
STI big picture
STI seems to have broken out of a 10 month ED channel. Looking at this spurt of bullish rally, there should be more upside should it clear the resistance identified.
ST Maritime Index
While STI showed a bullish breakout from a 10 month ED channel, Maritime Index suggests it is alaggard, if not a divergence of STI. A possible head and shoulders pattern seem to be emerging at this point of time.
Some preliminary thoughts:
1) STI bullishness is not driven by the maritime sector
2) I could still buy maritime stocks and only hope STI bulls can pull them up.
Let us take a look at the 2 stocks then:
COSCO corp big picture
Price is steadily downtrend for 2 years.
There is no suggestion of trend reversal yet. However, there may be some initial signs of accumulation. An initial upthrust from Sep 2013 could give rise to an accumulation pattern
at the bottom.
There remains 2 key resistances to be captured as shown.
Any long entries are speculative at best.
NOL big picture
On a glance, NOL seem to be faring worse than COSCO. It has fallen out of a 2 yr descending triangle.
there is a small bull flag which seems to be breaking out next week.
However there remains a strong trendline between $1.00 -1.04.
It is likely this may be more of a relief rally towards previous support turn resistance.
but in the event that price breaks above this mega level, then dying hopes for bulls may just be revived.
I am not keen to be shareholder of these stocks.
Bear market is intact.