I have never heard of Falcon Energy (by virtue of its illiquidity) until it caught my attention on 15 June 2009, the day when its daily volume shoot up to 64,984,000 shares. But out of the 64 millions shares traded, 60 millions was actually married deal done at 43.5 cents, a good deal when the stock was trading above 50 cents, huh.

Anyway, it does not really matter. Ever since the 64 million daily volume, Falcon Energy has attracted some attention of the trading community as can be seen in the gradual increase in its daily volume (as compared to low or no activity before). Something positive seems to be brewing. But as a technical trader, I do not guess, I enter based on chart formation, which in Falcon Energy’s case is positive.

The breakout of resistance at 67.5c coupled with an increase in volume on 6 July 2009 more or less confirms Falcon Energy’s uptrend. The next resistance is at 72.5c. Short term traders might treat the previous resistance 67.5c as the immediate support. However, the next support at 59.5c is a more realistic support in my opinion.

Celestial Nutrifoods' setup was very beautiful with break out price ready at 30.5.

It has come a long way since it hit a historical bottom of 8 cents in Mar 2009. All indicators and signs confirmed Celestial’s bullishness so far (before today). Volume is substantial, price is trending upwards, Directional Movement shows strong up trend, MACD is bullish, etc.

All seemed well until this morning when it opened gap down at 20 cents. This bearish big gap altered Celestial’s fate in attempting to be the next Big Star.

Without much hesitation, Trader88 liquidated all positions held in Celestial with some losses. Exit price was at 20.5 cents. Trader88 first bought Celestial when it broke out at 20.5 cents on 6 May 2009 and accumulated more on its way up when it became clear to be the next Big Star.

It is after Trader88 liquidated Celestial that he found out from SGX’s web site the plunge was actually due to the “UPDATE ON FINANCING FOR THE POTENTIAL EARLY REDEMPTION OF THE S$235,000,000 CONVERTIBLE BONDS”. That means fundamentally, uncertainties are ahead of Celestial now, whether there could be more borrowings, rights issue or new shares issues. As a trader, Trader88 does not like “known” uncertainties to be in his trading equation. So liquidation is the only way to go. In fact, the gap down this morning was already a big hint (excuse) for him to sell off Celestial before reading the news.

It is not that all indicators were inaccurate, it is due to the “unforeseen circumstances” that happen all the time. Traders just have to be alert at all times for such events to happen.

Since hitting more than 4-year low of 1.70 (adjusted for rights issues) on 3/3/2009, Capitaland rebounded with strength until it almost doubled its value to 3.13 on 16/4/2009, a spectacular performance of 84% return in 1.5 months!

However, it advanced as fast as it plunged, with 25% of its value vanished since the recent high of 3.13! It is obvious the trading strategy of late is to enter and exit with fast and furious actions, best adopted in times when the underlying economy still looks very fragile.

It appears that Capitaland might hover around the 50% Fibonacci retracement of 2.40, a level once broken down with volume will mean further downside towards 2.25.

On the flip side, there is a high chance Capitaland will experience a technical rebound as it is basically oversold with short term resistance capped at 2.58.

Biosensors International Group has been slowly gaining momentum since it touched historical low at 22.5 cents last October. It has been trading upwards in the ascending channel, a sign that it might have bottomed. More volume has to be present to ascertain its bullishness though.

At the moment, the resistance is located at 39 cents with support at 31 cents.

Singapore Technology Engineering Ltd (ST Eng) has been trading within an ascending triangle formation since hitting 5-year low at 1.82 on 28 Oct 2008. The current resistance at 2.58 seems to be a tough obstacle, being tested numerous times without success, while higher lows are achieved, forming an ascending support line B which is forcing it towards the 2.58 resistance.

A breakout above the 2.58 resistance or below the support line B has to happen by early February 2009.

From the ascending triangle, it seems that the likelihood of it breaking above 2.58 resistance is high (even more so in a bullish environment).

However, one must not discount the fact in current gloomy environment, it is highly probable that ST Eng will trade below the support line B and continue its longer term downward movement.

Trade with caution.

Midas must maintain above 42c in order to finish its bottoming process.

If it trades below 42c, its previous low at 25c might be re-tested.

The immediate resistance is at 50.5c.

Wilmar is still in the downtrend, but its downward momentum seems to be slowing down with crucial support at 1.76, a level if broken will mean continuation of downtrend.

The immediate support is at 2.02 though, which was nearly broken today, signaling its determination to stay up. If Wilmar can stay above the 20-day SMA and subsequently break the resistance at 2.75, the signs of bottoming will be more apparent.

From technical point of view, it will be much safer to go long after it breaks above 2.75.

It has been almost a month since I last covered Capitaland. Basically there was nothing much to mention except that it was on the way down.

However, Capitaland’s recent chart seems to show a sign of slow down in its downward pressure. A comfortable support seems to have settled at 2.28. This is good news for long term investors to bottom fish but please be aware that even though the support seems to be at 2.28, it might be caught in the side way movement for a while so as to gain momentum before it moves on.

If the near term resistance at 3.28 can be convincingly broken through, and its price maintains above 20-day SMA or better still above 50-day SMA, more upsides will be expected and it would then be more likely that Capitaland has successfully bottomed out.

On the contrary, if Capitalnd were to give up 2.28, it will move down to test the psychological support at 2.00.