Keppel Corp is testing the $8.45 resistance for the 3rd time! If it cannot break the resistance, a triple tops may be formed. There is also a divergence in price vs volume. If tomorrow market open gap down and end with a bearish candle, an Evening Star is formed and the trend will be reversed. The price may move down to around $7.00 level.
Epure International closed with a black marubozu candle today at $0.61. It has also formed a Head and Shoulders and will probably retrace back to test the 20D and 50D MA support lines again. If it breaks these MA support lines and move south, the trend reversal is confirmed. The chart and candlesticks pattern look bearish. However, a retracement back to $0.46 (61.8% Fibonacci Retracement level) is good for a healthy long term up trend.
Semicondutor industry is a cyclical industry. It is forecasted this industry will grow at a minimum of 10% in 2010. Recent semiconductor industry reviews:
- Global semiconductor revenue could grow about 10 percent next year after two years of declines, as new computers and feature-jammed smartphones help boost chip demand – Gartner
- Global pure-play semiconductor foundry revenue will decline about 11% in 2009, but then increase 21% in 2010 – iSuppli
- The chip sector has been struggling over the last few years as the global economy, oversupply, and price pressures have stalled sales. But as the oversupply and under-demand cycle has stabilized, sales have improved, according to recent reports from the Semiconductor Industry Association.