STI Chart Analysis

Ichimoku Cloud (daily)
STI has little movement in the past week, displayed by the many small body candles. Both Tenken sen (blue line) at 3145 and the Kijun sen (red line) at 3199 are still moving up together. There is a higher chance that the up trend may continue. As the cloud top has gone lower to 3100, 3145 is now a support level to monitor for any sudden change in the rising trend. The next resistance test is still the 3200 level where a few attempts in the past few months had failed to overcome confidently.

Bollinger Bands (weekly)

Weekly STI has shown a slow down in moving up after last week's bullish mood. This is a cautious reaction. The upper band is same at 3256 (resistance level) and the lower band is higher at 2988 (support level). Middle band is also moving higher at 3122, which is a good sign for the bulls. The next challenge for STI is to go above the upper band convincingly in the coming weeks.

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

STI Chart Analysis

Ichimoku Cloud (daily)
STI has surged strongly over the week to 3183. Both Tenken sen (blue line) at 3129 and the Kijun sen (red line) at 3094 are also moving up together. This is a positive sign for the bulls. As STI has gone above the cloud top level of 3125, this is also a bullish sign. 3125 is now a support level to monitor for any change in this up trend. The next resistance test will be at 3200 level where a few attempts in the past few months had failed to overcome confidently.

Bollinger Bands (weekly)

Weekly STI has washed away last week bearish mood with a big white candle. STI is above the middle band at 3115 level. The upper band is currently at 3256 (resistance level) and the lower band at 2974 (support level). Both bands are moving higher, which is a bullish sign. It will be a more definitive signal if STI can go above the upper band convincingly in the coming weeks.

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

STI Chart Analysis

Ichimoku Cloud (daily)
STI is now in between the Tenken sen (blue line) at 3113 and the Kijun sen (red line) at 3078. The momentum of the strong recovery has dissipitated and the market seems to be looking for a direction. 3078 will be the first important support to watch in any possible down turn. The consecutive 3 smaller candlesticks after 2 bigger black candlesticks show an indecisive market. The bears have a winning week by pushing the index below the cloud, however the bulls still has a chance to push up the index as the cloud level is not far from its current level of 3084.

Bollinger Bands (weekly)

Weekly STI shows a bearish candlestick pattern with a big black candle appearing after a doji. The STI is staying around the middle band at 3109 level. There is still no clear direction of a longer term trend. The upper band is currently at 3255 and moving lower. This band had not been challenged for more than 6 months. The lower band at 2963 is moving higher and may provide a good support in any down turn.

 Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

STI Chart Analysis

Ichimoku Cloud (daily)
STI manages to close off the week at 3151 slightly above SPAN A 3144 (top part of cloud). This is a positive sign for the longists. The recent high of 3156 will present the first level of resistance in any up move. STI Tenken sen (blue line) at 3100 has also gone slightly above the Kijun sen (red line) at 3083. The momentum of the strong recovery will continue if the gap between them gets widen. 3144 is an important support level to monitor.

Bollinger Bands (weekly)

Weekly STI has shown a slow down in the upward recovery (indicated by the small body candlestick). The middle band at 3106 level is the new support level. The upper band resistance at 3267 is a strong resistance level to overcome for a bullish trend to be confirmed. This resistance level was overcome in Nov 2010 and Jan 2011 but STI did not manage to maintain above the level for long.

 Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

STI Chart Analysis

Ichimoku Cloud (daily)
STI manages to close off the week at 3139, whisker away from SPAN A 3143 (top part of cloud). STI has overcome the strong resistance at 3065 as mentioned in last week report and this point is now a new support level. The rising momentum will challenge the next resistance at 3143. STI Tenken sen (blue line) at 3091 has also gone slightly above the Kijun sen (red line) at 3089. The momentum of the strong recovery will continue if the gap between them gets widen. Otherwise, 3143 will be a level where the index may consolidate a while befor the next move (similar to the previous few months).

Bollinger Bands (weekly)

Weekly STI has successfully crossed above the middle band at 3103. The BB channel is positioning to move upward. This is a recovery sign. 3000 level has become a new support level with this strong rebound. The upper band resistance at 3268 is the next resistance level to overcome for a bullish trend to be confirmed.

 Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

STI Chart Analysis

Ichimoku Cloud (daily)
STI manages to close off the week at 3067. As mention in the  last report, STI face a strong resistance at 3065. This week will see whether STI can maintain above 3065 and regain back the rising momentum to challenge the next resistance at 3143. If not, STI may hover around 3065 for a while as the next consolidation level. The next strong support level is at 3000, the recent low point where STI recovered. STI Tenken sen (blue line) at 3036 is still much lower than the Kijun sen (red line) at 3089. It also shows that the momentum of decline is slowing down.

Bollinger Bands (weekly)

Weekly STI shows a good rebound and the index may challenge the middle band at 3100. The BB channel is moving downward. This is a bearish trend. It is a crucial time to see if the lower band support at 2928 will hold in the coming weeks. Any recovery will need to go above 3100 and toward the upper band resistance at 3271.

 Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

STI Chart Analysis

Ichimoku Cloud (daily)
STI Tenken sen (blue line) at 3061 and is going much lower than the Kijun sen (red line) at 3091. This is a bearish sign. The consolidation phase seems to be over since STI went straight below the cloud in a clear move in 2 weeks. STI below the cloud means it will be facing a strong resistance at 3065 and another resistance at 3145 if the bulls want to regain back control for an uptrend. The previous low of 2920 on 18 March 2011 is the next support level to watch.

Bollinger Bands (weekly)

Weekly STI has dipped below the middle band at 3107 and moving towards the 2936 support level of the lower band. The previous time when STI touched the lower band, it rebounded by over 100 points in 3 weeks. It is a crucial time to see if the support will hold again in the coming weeks.

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

STI Chart Analysis

Ichimoku Cloud (daily)
STI Tenken sen (blue line) at 3126 and is very close to the Kijun sen (red line) at 3128. STI is now positioned inside the cloud, which means it will be facing a strong support at 3065 and a resistance at 3143. If 3065 is broken convincingly, it will become the start of a new bearish trend. Longists will have to monitor the level carefully to determine if it is a false break down or a new down trend has started.

Bollinger Bands (weekly)

Weekly STI has dipped below the middle band at 3118. If this support is broken, STI may go lower towards the 2952 support level of the lower band. From the past few weeks, STI has went below the middle band twice including last week data and both lows are at about 3077. As such, it can potentially become the start of a new bearish trend if this 3077 support level is broken convincingly this week. Beware of false break down which is not followed by high volume.

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

A-Sonic Chart Analysis: Exponential Moving Average Moving Up

Exponential Moving Average (EMA)
The EMA lines are beginning to rise again. The 20-D EMA line (yellow) at 0.076 is providing the first level of support. It has been a strong support in the past few trading days.

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

STI Chart Analysis

Ichimoku Cloud (daily)
STI Tenken sen (blue line) at 3140 is back below Kijun sen (red line) which is at 3147. This confirms that the consolidation phase is still not over yet. A strong move about the blue and red line will mark the start of a new uptrend. Thus far, the two Span lines is still not diverging widely when moving upward. The pattern can be considered mildly bullish. The near term support (Span A) is now at 3112 while the stronger support level (Span B) is at 3073.

Bollinger Bands (weekly)

There is not much changes in the weekly chart. The middle band at 3128 is providing quite a strong support at the moment. If this support is broken, STI will go lower towards the 2959 support level of the lower band. A uptrend move will need it to break the resistance level at 3298 as confirmation. As the bollinger band narrows, the chances of a change in trend or start of a new trend will increase. For the time being, keep monitoring the daily chart for any sudden movement.

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

STI Chart Analysis

Ichimoku Cloud (daily)
STI consolidation is more than a month old already. STI Tenken sen (blue line) is now at 3154 while Kijun sen (red line) is leveling at 3147. The blue line has moved slightly above the red line which indicates some bullishness. STI is still not considered out of the consolidation phase until we can see a bigger difference between the two lines. A significant event for last week movement is Span A has crossed above Span B line which signifies a new uptrend move. The two Span lines should diverge while moving up together as a strong signal to a new up trend. The near term support (Span A) is now at 3101 while the stronger support level (Span B) is at 3083.

Bollinger Bands (weekly)

The weekly chart has not indicated a new up trend yet. The candles of recent fews week are still hovering above the middle band of 3135 which will provide the first support level. If this support is broken, STI will go lower towards the 2957 support level of the lower band. A uptrend move will need it to break the resistance level at 3312 as confirmation.

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

STI Chart Analysis

Ichimoku Cloud (daily)
STI Tenken sen (blue line) is at 3138 while Kijun sen (red line) is leveling at 3147. The red line above the blue line indicates some bearishness, but since the difference is not much, it should still be a consolidation period awaiting a new direction to be confirmed. The near term support (Span B) is now at 3089 while the stronger support level (Span A) is moving closer to it at 3068. This could indicate the support at 3089 is getting stronger by the day. A cross over of Span A above Span B line will signify a new uptrend move.

Bollinger Bands (weekly)

STI is still in consolidation mood and looking for a new direction based on last week recovery as shown by a similar to piercing line candlestick pattern. A uptrend move will need it to break the resistance level at 3315. The middle band is at 3136 which will provide the first support level. If this support is broken, STI will go lower towards the 2957 support level of the lower band.

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

A-Sonic News - Removal from the Watch-List with effect from 20 May 2011

A-Sonic will be removed from the Watch-List with effect from 20 May 2011.

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_0037D3C2C759D8884825788F00323B11/$file/sgxnet110513-01.pdf?openelement

Share price opens at $0.075 and reaches a high of $0.08 (up 23.1%).

STI Chart Analysis

Ichimoku Cloud (daily)
STI Tenken sen (blue line) is at 3142 while Kijun sen (red line) is moving higher to 3147. The 2 lines crossover may indicate the start of a bearish trend or a consolidation period awaiting a new direction to be confirmed. So far, the long white candle has provided a strong signal that the near term support is around 3099 (as indicated in the previous week chart). The near term support (Span B) is now at 3096 and the stronger support level (Span A) is moving up from 3005 to 3018. If STI continues the uptrend move, the two support levels will cross over to signify the new uptrend move.

Bollinger Bands (weekly)

STI has stablised and still looking for direction. A uptrend move will need it to break the resistance level at 3313. The middle band is at 3134 which will provide the first support level. If this support is broken, STI will go lower towards the 2956 support level of the lower band.

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

STI Chart Analysis

Ichimoku Cloud (daily)
STI Tenken sen (blue line) is levelling at 3160 while Kijun sen (red line) is moving higher to 3126. It is important to monitor closely that the blue line does not cross down the red line as this will indicate the start of a bearish trend. The near term support is adjusted lower to 3099 and the stronger support level is now at 3005. If STI continues the uptrend move, the support levels should reverse and start to move upward until the top (Span B) and bottom (Span A) of the cloud cross over.

Bollinger Bands (weekly)

STI has stablised and looking for direction. A uptrend move will need it to break the resistance level at 3318. The middle band is at 3139 which will provide the first support level. If this support is broken, STI will go lower towards the 2960 support level of the lower band.

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

STI Chart Analysis

Ichimoku Cloud (daily)
STI Chikou Span is still staying above the cloud despite an attempt to breach the near term support of 3126 (see STI chart analysis on 18 April 2011). The near term support is adjusted lower to 3113 after the break down attempt. Stronger support level is also lowered to 3045 from 3075. Tenken sen (blue line) is still at a distance away from Kijun sen (red line). Once the red line is above the cloud, STI will likely continue its uptrend for some time until the Kijun and Tenken lines crosses again.

Bollinger Bands (weekly)

STI has hit the first resistance level of 3205. A break up will likely see STI attempting to break the resistance level at 3321. The middle band 3138 will provide the first support level. If this support is broken, STI will go lower towards the 2955-2963 support level of the lower band. 

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

STI Chart Analysis

Ichimoku Cloud (daily)
STI Chikou Span is above the cloud for a number of days. The near term support is at 3126. Stronger support is at 3075.

Bollinger Bands (weekly)

STI is above the middle band (SMA) at 3137 which may not be a strong support yet. The next resistance is at 3237. A new uptrend will be in place when STI can break both 3237 and 3322 levels decisively within weeks.

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

A-Sonic AGM Notice

Annual General Meeting of the Company will be held at

168 Robinson Road, Capital Tower, Level 9 FTSE Room, Singapore 068912 on Wednesday, 27 April 2011 at 3.00 p.m.

One of the item is to approve a tax exempt (1-tier) first and final dividend of 0.125 Singapore cents per share for the financial year ended 31 December 2010. At price of $0.07 per share, the payout ratio is about 6.41% and dividend yield is 1.92%.

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_5B1784BB11785AAD482578700015BF6F/$file/sgxnet110411.pdf?openelement

More info on the dividend payment:

Members whose securities accounts with The Central Depository (Pte) Limited are credited with shares at 5.00 p.m. on 5 May 2011 will be entitled to the first and final dividend.

The dividend, if approved at the Company’s Annual General Meeting to be held on 27 April 2011, will be paid on 27 May 2011.

A-Sonic: FY2010 vs FY2009 Result Comparison

Below is a table comparing the recent annual results. Top line and bottom line have both improved spectacularly. The market, however, is still adopting a cautious approach. The share price is still considered low given that the PE is 3.59 only.

Stock chart has shown a bottoming price pattern and a slow recovery from the lowest point of S$0.045 on 10 Dec 2010. Investors will hope to see the formation of a Cup pattern in the next few weeks.

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

A-Sonic's Education Business

In the announcement on 27 Sep 2010, A-Sonic Aviation Training Private Limited (“A-Sonic Aviation Training”) has obtained CAAS SAR-147 MTO approval from the Civil Aviation Authority of Singapore.

A-Sonic Aviation Training was incorporated on 7 January 2010 with the aim to offer solutions to the ever-increasing global demand for aviation-related training with particular focus on maintenance, operations and safety.

A-Sonic Aviation Training intends to expand its services to include the following courses:
(i) CAAS SAR 66 Basic courses leading to a Licensed Aircraft Engineering certification;
(ii) Basic aircraft engineering;
(iii) Specialty including aircraft structure and composite repairs; and
(iv) Customized aircraft engineering.

Here are some news that may give some insights on the prospect of A-Sonic's education business and logistics business.

1. The Civil Aviation Authority of Singapore (CAAS) will launch a S$9 million Aviation Manpower Programme (AMP) for the period from 1 December 2010 to 31 March 2015 to bolster human resource development efforts for Singapore's aviation industry. (18 Nov 2010) 
2. According to IATA, international airfreight traffic grew 24% and revenue generated by air cargo rose 30% through the first 10 months of 2010 compared to the same period in the previous year. IATA expects air cargo rebound will continue in 2011 but at slower pace. Chief Economist Brian Pearce said, "If we step outside of Europe, particularly in Asia and Latin America, there is actually really strong growth." (14 Dec 2010)
3. Global air freight rose by 9.1% in January 2011 compared to the same month of the previous year. (1 Mar 2011)

Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

Will A-Sonic be a Turnaround Story?
 
On 27 Feb 2010, A-Sonic reported FY2010 net profit of US$11.22 million, turning around a net loss of US$1.72 million for FY2009. Although US$8 million of this profit came from the sale of one of its distributorships in North Asia, the $3+ million profit resulting from its core businesses in logistics and aerospace component distributorships is still a remarkable feat.

The company operates its businesses globally, covering 34 cities and 14 countries and spanning 4 continents. Financially wise, it is now sitting on cash of US$31 million (net cash US$22 million) and had a gearing of just 20 per cent.

    'We stayed true to our belief,' CEO Janet Tan said in a statement. 'Even during the two toughest economic contractions in 2008 and 2009, and the most uncertain of times, we remained resolute that we should invest in our business for future sustainable growth. By sticking to our strategy, we emerged stronger in 2010.'

From the above statement, the CEO is confident that the worst may be finally over for the company with their strategy of investing in sustainable growth business. She had purchased 5,904,000 shares at S$0.06389 each at open market in 30 Dec 2010 (total cost is about S$380k). Investors will have to wait and see whether she will continue to buy back more shares to instill confidence in the prospect of the company.

A-Sonic is placed on SGX watchlist due to three years of losses in September 2010. At the price of $0.065 - $0.07 and total shares of 719,903,629, the company has met the requirement for their market capitalisation to be above $40 million. Together with the profitability requirement, it is just waiting for 120 days before it will be removed from the SGX watchlist. Will there be more upside to the share when this happens?



Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

A-Sonic's Announcement on New Subsidiary in Cambodia

A-Sonic Aerospace Limited (the “Company”), through one of its subsidiaries, has
incorporated a wholly-owned subsidiary, jetBuddies Co., Ltd (“jetBuddies”) in
Cambodia. Subject to all relevant approvals, jetBuddies aims to provide scheduled
and/or unscheduled flights

This is a rather interesting development in A-Sonic. The new subsidiary “jetBuddies” has a name that sounds like a budget airline. Hope this venture will turn out well for the company.


Disclaimer: All info posted is for reference only and not an inducement to buy or sell shares. You are solely responsible for your own actions.

Stock Trading Maxims

1. Cut loss short and let profit run. If you are wrong, wrong small. Never average down. If you are right, right big. Always average up.
2. Never add to a losing position. Averaging down is a risky game.
3. A optimist sees opportunities in times of uncertainty. A pessimist sees risks in times of certainty. - Sir Winston Churchill
4. What's right isn't always popular and what's popular isn't always right.
5. A profit, though small, is still a profit.
6. Market strong, buy more - market weak, sell more.
7. Listens to the market and not to one's heart or brain.
8. Just follow what the market is telling you amidst all the noises.
9. To enter the market without knowing where its going, you lose even before you enter the market.
10. The Market will always be there, make sure you are still around.
11. Markets can be very illogical, abide by your stop loss.
Risk-takers - enter a trade with a target price but not a stop loss price.
Trend's your friend - until it bends.
Look after the downside, the upside will look after itself.
Know what you buy, do not follow the herds.
Capital Preservation is KEY. If you lose all your chips, you can't bet.
Plan your trades and trade your plan.
Be greedy when others are fearful and be fearful when others are greedy.
Hold your strongest stocks the longest and sell stocks that stop moving up.
It is never be good to own too many stocks.
Do not fight against trend. Avoids an army when its spirit is keen.
Cheap can become cheaper, so don't pick bottom.
Investing requires conviction and patience and timing is crucial.
Trade more doesn't mean you make more money.
In bull, buy on correction. In bear, sell on rally.
Success can be one of life's worst enemies.
Big success is the result of little successes achieved.
Reasons are found to justify price gains or price losses. Not price gains or losses due to reasons.
Don't become an Involuntary Investor - Jesse Livermore
A fool and his money are soon parted.
Not the strongest, nor the most intelligent but those most able to change will survive - Charles Darwin
Fear doesn't kill you, but you may suffer missed opportunity. It's greed and HOPE that really kills.
People who lost huge money have false hope.
Master your own fears and greed, you shall rule them all.
Golden rule - Set your BUY & SELL targets.
It's is not when you buy that matters....IT IS WHEN YOU SELL THAT COUNTS.
Never try to buy at the lowest and sell at the highest - Buy on the way up and sell on the way down.
One rebound does not make a recovery.
Stock market is a place where BIG eat SMALL and FAST eat SLOW.
Those who can trade, don't teach. Those who teach, can't trade.
Those who give advice most freely are precisely the individuals who are least qualified to do so.
When you realise you've made a mistake, take immediate steps to correct it.