In November last year, minority shareholders of United Overseas Insurance wrote to the UOI board to ask it to distribute UOI’s Haw Par shares. Haw Par closed at $10.75 at end-Oct 2024 compared to $15.20 on Oct 10.
Technically, Haw Par’s shares have broken out of a minor bull flag which indicates an upside that would be a new 2025 high of $18. It closed at $15.21 on Oct 10.
Technically, unlike the leading blue chips that drove the Straits Times Index to new highs, Haw Par still looks robust. Both quarterly momentum and directional movement indicators should be able to support further gains. The rally for this stock could have legs and $18 appears attainable. Support is $14.90.
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Elsewhere, Propnex has made a new high after breaking out of a thrice-tested resistance at $2.45. The upside is around $2.75. Although the chart pattern looks interesting, quarterly momentum has turned down, suggesting that that further gains are likely to be laboured.
Right Timing highlighted Tuan Sing (on Oct 3). Its chart pattern remains intact, and it has cleared resistance at 31 cents. The moving averages have turned positive, as have directional movement indicators suggesting that prices should be able to move progressively higher, towards the upside of 45 cents.
The STI’s quarterly momentum has formed a clear negative divergence with the index. However, the chart pattern and the moving averages remain intact. The target by a couple of US houses of 6,000 for the STI appears to stand, but let’s get to 5,000 first. In the meantime, the current consolidation may find support at 4,344, the peak formed in September before the STI broke out. It ended the week of Oct 4-10 on 4,427.
