Evening all,
The local bourse has been creeping up over the last few weeks; volume is decidedly low, and it does not seem like any group of stocks is making headlines.
Today, I have two charts I want to place side-by-side - that of Frencken and of Kencana. Kencana Agri, F9M.SI, started climbing out of a consolidation in the second half of 2010, and was progressively making higher highs from August through December. At the same time, volume was in a downtrend. The spikes in volume on strong up-days were getting lower, and the general volume was declining. When 2011 came, Kencana reversed, and has never looked back since.
Moving the attention to Frencken, E28.SI, I have an up-to-date chart below. Frencken has been in a very strong uptrend for quite some time: a 45% showing in 2013, and 42% thus far for this year. Since the start of this year, Frencken has been making higher highs in stock price but lower highs in volume of shares traded. I think the picture looks the same as in Kencana. Frencken is, and Kencana was, riding nicely above the 50- and 200-day MAs.
On any other day, I will be bullish on Frencken because of the nice trend in place. However, with such a “suspicious” formation that looks so much alike to another in the past – and from another chart – I have to be cautious. Let us see how this goes.
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