Charts analysis 19-10-13

Dow Jones is currently consolidating within a very wide range of around 1000 points. Unless a breakout happen, it will be better to be doing range play. And it is pretty obvious that DJ is at a high region, although it has potential to go towards 16k however please exercise caution on taking huge long term positions in the equity markets now.

STI does have a head & shoulders (HNS) pattern that is developing and prices is near the neckline which could act as a resistance area. Aggressive traders could look for a potential close above 3255 and considering longing it, else a close above 3275 would be safer. On another note, STI hns pattern is formed at the top, therefore the probability of it working out is much lower.

The 3 Singapore bank counters are moving pretty much in the same boat, with all consolidating within a symmetrical triangle and it might take some time before breaking out either side. Among the banks, DBS is stronger technically, with prices remaining above 20, 50, 100 & 200 moving average. So if one is to invest, pick the stronger one.

Kepcorp currently do have a HNS pattern forming and prices are exactly at the neckline and with the 200 moving average acting as a resistance. Should prices close above 10.92, chances for it to move towards 11.2x will be highly likely.

Investment Opportunities (Long-term)
The following counters are the ones I recommend for one to include in their portfolio for long term investments.
1) Biosensors - hitting my 50% discount mark and long-term fundamentals remain sound
2) Cosco Corp - Shipping counters took a hit and have not recover significantly since 2008. I understand Yangzijiang has ran and NOL is much weaker in fundamentals therefore Cosco could likely be the better choice. Shipping businesses will pick up when the global economy starts to grow further.
3) Suntec Reits - Suntec Reits has been giving slightly lower dividend due to the upgrading that it has been doing at its exhibition halls and rents could be much greater after the upgrading projects are done.
4) Sabana Reits - Sabana Reits remains as an attractive reits investment due to its high dividend yield (approx 8% p.a). Chances are that price equilibrium might occur and pushing its price up and making its yield to 6-7%.

Please note that all these analyses are my personal opinions and do please consult your authorized stock brokers for advice and trades.