With no major movement in price, it is observed that there is a sharp increase in volume of more than 100% as compared to the average volume traded over the past 50 days. It is also observed that the MacD line is below the signal line indicating some short-term price weakness.
Company Information
Background
The Company was incorporated on 3 September 1999 under the name if ei-Nets.com Pte Ltd. On 5 January 2000, the Company was converted into a public limited company and changed its name to ei-Nets.com Ltd. On 12 December 2000, the Company changed its name to ei-Nets Ltd
The Company is principally involved in providing e-commerce solutions for mechanical and electricial engineering (M&E) and building industries in Singapore through the development of an e-mall/cyberspace hub as well as the holding of investments.
The Company owns the worldwide, exclusive, unlimited and perpetual rights to the I-nets technology for its M&E and building portals, and has an option to acquire the same rights for an automotive portal. The I-nets technology won the Top 6 Best Software Products at COMDEX-ASIA in 1997 and the SingaporeONE Oustanding Application Award in 1998. The I-nets technology is an enabling technology that allows text, still images, audio, high-resolution interactive I-nets video and, computer-aided design drawings (CADD) to be combined into one hybrid file. Such a file is compressed and can be transmitted within seconds by using a standard modem over normal telephone lines. After downloading the contents, the technology also allows the user to rotate objects and zoom-in on details without experiencing any loss of resolution.
The Singapore segment of these portals is operational. As for the international segment, it is currently negotiating with major industry participants in various countries. These portals are replicable and the I-nets technology will be made available through joint ventures with major industry participants.
Trend: Consolidation with a potential bullish breakout bias
The benchmark STI remains sandwiched between the 20 and 50-day moving averages. Interestingly, a possible bullish crossover signal was spotted in the MACD trend indicator, which suggests a potential change in the trend. In addition, upside momentum is also building up as the Stochastic oscillator continues to inch upwards. In order to see a follow-through, the STI needs to break above the immediate resistance at 2952 to see a potential upside push towards 3043 next. On the other hand, a violation below the immediate support at 2910 may negate the potential bullish tone to see a slide towards the rising window gap support of 2886-2875.
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