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KSH, will it resume the uptrend after consolidation?

For the recent rally of STI since late March, one of the strong sectors that moved a lot is property sector which became a market leader. It is likely to remain strong for some time and may provide more opportunities to investors in near future. In the past a few days, STI hit the resistance at around 3280 and pull back, it may be an opportunity to buy on dips. However, to avoid the market to sell down further, it may be safer to consider strong stocks which have better potential to move up again if STI rebound or resume the uptrend. KSH is a good candidate that investors may look at. It has been dropping since late May 2012. After dropping for 9 over month, KSH started to turn up again. From weekly chart it can be seen that both moving averages and MACD histogram are indicating bullish signal already. The STI sell down on 25 and 28 May did not affect KSH a lot, it just had a mild pull back with volume shrunk, indicating that the support at around 0.5 is strong and the sellers are relatively weak. From the fundamental perspective, the recently financial statement released on 11 Feb report a surge of around 50% for both revenue and net profit, indicating that the company is not only stable but having a nice growth as well, which makes it a relatively safe investment. One may consider buy on dips during pull back and expect the stock may resume the uptrend and run some more after consolidation. It needs to be taken note that KSH may release next quarterly report in Mid of May, it may bring some volatility to short term traders and investors.

Weekly chart:

Daily Chart:

Robin Han
Robin Han

Dr. Robin Han, a graduated from NUS with a Ph.D in Department of Chemical and Biomolecular Engineering, has been actively trading in Singapore stock market since 2007. His passion has let Dr. Robin to become a full time trader since 2010. He has extensively share his experience with his fellow investors on trading Singapore stock market using both technical analysis and fundamental analysis.

Dr. Robin is a regular guest speaker for radio 95.8 on financial program. He also has been invited by different companies and societies to conduct educational seminars on stock investments, including Shares Investment, Wealth Directions (Founder: Dennis Ng), Traders Round Table, SIM, Raffles Business International, Online trader's club and Alpha Alliance. He is also contracted by N2N (a listed trading software provider in Malaysia) as their overseas educational speaker in stocks.