Olam, Capitaland, STI

Above is a weekly chart of the STI because I wanted to show the larger trend of the STI. Things do not look so good. The STI struggled from August to stay above the very key support of 2640. From the weekly chart, we can see that the STI has been in a down trend since Oct 2010. If the STI weekly chart were to close below 2600, the downtrend could be very severe. Let us see how things unfold in 2012.

Below are weekly charts of Capitaland and Olam. I have decided to highlight these two charts because they are showing extremely weak price action and trends.




Above is a weekly chart of Capitaland. It closed below a key support of 2.275. Capitaland has been on a downtrend since October 2011. It looks like it is approaching the lows of 2009 of $1.785. It is best to avoid buying this stock until it finds support.



Above is a weekly chart of Olam. It looks dangerously close to breaking support of around $2.13. I also would suggest not buying this counter unless it rebounds convincingly from this level.

end of day look at STI

Dear clients, the market has been very quiet in December 2011. The STI closed up today on quiet trading and is headed towards resistance of 2700. Momentum is turning up, but middle term and long term trends are down. Support remains at 2600.

end of day look at STI

Good evening. unfortunately, it was another quiet day today. US markets closed higher on upbeat US and German data, and strong sales of Spanish Bonds. The STI gapped up and closed the day higher at 2673. Support at 2600 held, but the overall trend is still down, with the STI making lower lows and lower highs since Oct 2011. Resistance is 2700. It is best to remain cautious.

end of day look at STI, capitaland

Another down day for the STI. I see continued weakness for the STI. Momentum is down, 50day moving average is showing down trend, 200day moving average continues to trend down. It has also closed slightly below the previous pivot low of 2640; and it is not a good thing.




After the announcement of our government's property cooling measure, naturally, property counters took a big hit. It closed just above the previous pivot low of $2.75. It looks a bit like a hammer, but not quite and I am wondering if it will find support at this level.

In summary, the overall trend of the market is down, but prices of most counters are at major support / pivot levels, so a technical rebound looks possible.

end of day look at STI

Another quiet day today. I really wonder what is happening in EUROPE. Anyway, what does the chart of the STI say? The momentum of the STI has now shifted to the down side, the 50day moving average has turned back down and the 200day moving average continues on its downtrend. 2700 has now turned resistance and it looks like we are in for weak days ahead. Next support is around 2630.

end of day look at STI, golden agri

Above is an end of day candlestick chart of the STI. The STI rallied in the afternoon on hopes that the threat of mass credit downgrades by S&P will force European leaders to quickly come up with a convincing framework in resolving the euro zone debt crisis.

Momentum, shown by the MACD, continues to rise. The MACD chart has been on an uptrend since late August, with it tracing higher lows so far. There appears to be some underlying strength in the market. The index has been oscillating around the 50day moving average, and the medium term trend is still sideways. The longer term trend is still down. Support is at 2700 and the next resistance is at 2900.





Above is a daily end of day candle stick chart of Golden Agri. It has continued to be on an uptrend since late September 2011. Both short term and longer term trends are up. Momentum is also up. Support at 0.70 has held over the past few days, so this appears to be strong support. Resistance is 0.745.

end of day look at STI, golden agri

Major news:

The US central bank, or Federal Reserve, agreed to provide cheaper dollar funding to the European Central Bank—which can then provide cheaper dollar loans to cash-strapped European banks. The goal is to ease the credit crunch in Europe.

Chinese stocks, which have been languishing in recent months, got a shot in the arm on Thursday after the central bank cut reserve requirement ratios (RRR) for all lenders by 50 basis points.


The outcome is the DJI rising by more than 4% to close above 12,000. Asian market thus gapped up when it opened this morning. But after that, trading became cautious and the STI basically went sideways after that. The STI is now at the 50day moving average line. I am not sure if it this will be the support or resistance. However, momentum is continuing to turn up. Support is about 2700, while resistance is about 2900.



Golden Agri continues to rise. Support is 0.695, resistance is about 0.745.

end of day look at STI, golden agri

Above is a daily candlestick chart of the STI. The STI seems to be turning around and managed to close above 2700 points. New few resistance levels are at 2750 (50day moving average) and 2900 (200 day moving average). Support is 2700 and 2636. Momentum is turning up.




Above is a daily chart of Golden Agri. It is one of the few counters that is currently trading above both the 50day and 200day moving averages. It managed to close above strong resistance of $0.70 and has also broken out of the long term downtrend line. In my opinion, this is a strong counter and worth watching.

end of day look at STI

Above is an end of day candle stick chart of the STI. I wonder if bargain hunters have started to come in upon news (subsequently denied) that IMF is in talks to support the Italian bond market. Whatever it is, the STI staged a rebound today, ending just shy of 2700 points. Major trends are still down, but momentum appears to be turning around.

end of day look at STI

Above is an end of day candlestick chart of the STI. The STI continues to head south. The 2700 resistance was broken today and it looks like it is headed towards the 2600 level. Momentum continues to fall, short term, long term trends are down.

end of day look at STI

Above is a daily chart of the STI. Another down day. EU leaders continue to squabble. And the US, their super committee looks unlikely to reach any meaningful agreement. Meanwhile, the market continues to tank. The STI is now slightly above the previous low pivot point at just below 2700. It will be interesting to see if this support holds. But momentum, medium term and long term trends are all down. Things do not look good.

end of day look at STI

Above is a daily candlestick chart of the STI. It does not looks good now. Support at 2800 has been broken. That leaves the next support at the previous pivot low, around 2700. MACD continues to fall, medium term trend (50day moving average) has turned down and the longer term trend (200day moving average) continues to be down.

end of day look at STI

The price action for the STI today was surprisingly strong during the later part of the day. The STI managed to close above the 50day moving average and above the 2800 level. The technical picture for the STI is still rather mixed. Momentum is still falling, the medium term trend is up but the longer term trend is down.

But do note that the US economy is growing, and the Eurozone, despite its much publicized sovereign debt problem, is also growing, albeit at a very slow pace. China also appears to be having a soft landing. So all is not lost.

end of day look at STI

Above is a daily candlestick chart of the STI. It was another quiet day at the market. It looks like everyone is taking a wait-and-see attitude. The index is drifting down towards the 50day moving average. I think that should give it some support (about 2800). Momentum is down, short term trend is still up but longer term trend is down.
This is a tough market to trade.

end of day look at STI, noble group

A look at STI first. Momentum is falling, short term trend is sideways, longer term trend is still down. 50day moving average line appears to be the new resistance for the STI. But range is small today, ending with a doji, so the market is uncertain on the direction to take.





Above is a daily chart of Noble Group. The price of Noble Group was unable to close above the previous pivot low of $1.205 again. This is not a good sign. I think this stock is best to be avoided for now.

end of day look at STI, noble group

Good evening. Market took a beating today. The STI fell below the psychologically important 2800 level AND the 50-DAY moving average. It is still above the previous low of 2750, but momentum is turning down, 50day moving average is turning down and the longer term 200 day moving average is edging down. I expect more weakness ahead. Next support is 2700.



Above is the daily chart of NOBLE GROUP. I am rather surprised by the magnitude of the drop due to the announcement of its 3rd quarter loss and the resignation of its CEO. The price has fallen below the previous pivot low of about $1.205 on high volume; not a good sign. I think it is better to avoid this stock for now.

end of day look at STI

Another quick look at the market. Today's close formed a 'dark cloud cover' candlestick patter. This is a bearish reversal pattern. Which is good, because it gives investors and traders a chance to get in when price retraces. Support for the STI is about 2800, resistance is at 2900. Medium trend is up, long term trend is sideways, momentum is up, but falling. I think it would be a good strategy to go long on dips.

end of day look at STI

A quick look at today's action. Volume was low today. Short term trend of the STI is up, Longer term trend is sideways, momentum is still up. Resistance is at 2900, support is at 2780. A break above 2900 would be extremely significant. For now, the STI appears to be stuck in a trading range.

a look at STI, Golden Agri and OCBC

First, a commentary on the broad market - the STI. Despite the uncertainty posed by Greece's decision to hold a referendum on the austerity measures to be imposed on the country, the STI managed to close above the 50day moving average. This further strengthens the support of its 50day moving average. Also note that the 50day moving average appears to have bottomed out and is now turning up. The 200day moving average also looks to have flattened. So the shorter term trend of the STI is upwards, while the longer term trend has gone from down to sideways. The STI needs to close above the 200day moving average to confirm that the longer term down trend has reversed.




Commentary on Golden Agri. Golden Agri is performing strongly and has been steadily climbing from its lows of about $0.55 in late September. The price has closed above its 200day moving average, but heavy resistance is seen first at $0.685 and then at $0.70. I do expect a strong uptrend from this counter once it manages to clear these two key resistance levels.





Commentary on OCBC. Banks have not been faring well as that sector is still facing uncertainties in the banking sector in Europe. The short term trend though improved, is still down. The longer term trend is also down. Momentum has been rising since early October, but appears to be stalling. The 50day moving average, in this case, appears to be acting as a resistance instead of as a support. I really would not recommend getting into the banking sector for now.

50day Moving Average provides strong support

Watching and reading about the drama unfolding in Europe is painful and confusing. So i prefer to look at the charts. What do i see? I attach a daily chart of the STI and two others to highlight what seems to me to be a turn around of the STI in general.

First, note that the STI has broken through the 50day moving average and that the 50day moving average is turning up. This shows that the short term trend is up. Second, after 2 days of consolidation, in which the STI fell briefly below the 50day moving average today, strong buying pushed the index up to close above the 2800 mark. Resistance is still at 2900, support at 2800.

The two other stocks shown here - capitaland and Genting, are also showing strong support at their 50day moving average.

Commodity stocks like Golden Agri and Noble group have also rebounded strongly.

end of day look at STI, noble group

Good evening, the market went super bullish today. Perhaps the STI is playing catch up with the rest of the world since it was closed yesterday. The STI broke through the 50-day moving average strongly on very high volume. Short term trend has turned up, momentum is still strongly up. Longer term trend, based on the 200-day moving average, is still down. Initial support is 2770 (base of 50-day moving average), next support level is 2700. Resistance is between 2900-2940 (next round number and the bottom of the 200-day moving average).




Above is a daily chart of Noble Group. Its behavior is similar to the STI. It broke strongly above the 50-day moving average today on very high volume. Resistance is about $1.70, support is $1.485. Short term trend is upwards, momentum is up, longer term trend is still down.

end of day look at STI

Good evening, above is a daily end-of-day chart of the STI. Resistance for now is the 50-day moving average. For me, it is good that the STI took a breather after rising for 8 days in a row. For the week, support at 2700 held, which is good. The STI is now moving sideways and it looks to me that a bottom at about 2530 has been formed. So for now, momentum is upwards, short term trend is sideways, longer term trend is still down. Key support levels are 2700 and 2650. Key resistance levels are 2770-2800 (50-day moving average line and previous high) and 2900. I think longer term investors can buy on dips.

end of day look at STI

Good evening, above is a daily, end of day chart of the STI. The STI appears to have comfortably broken through the 2700 resistance and is trending strongly upwards. It has hit resistance at the 50-day moving average and appears to have pulled back a little. Shorter term trend, as shown by the 50-day moving average, it turning to the upside. Longer term trend, shown by the 200-day moving average, is still down. Momentum is strongly to the upside.

end of day look at STI

Good evening, the STI managed to close above 2700 today; in face, it closed rather strongly. The STI is going to have a hard time going up. It first has to break through the 50-day moving average, then the 200-day moving average. But it does look like we are seeing some light at the end of the tunnel. Having said that, the longer term trends, shown by the 200day and 50day moving averages, are still down, but like i mentioned in my earlier comment, we are seeing a bullish divergence in that the MACD has already traced a higher low as opposed to the STI making a lower low. This is a strong signal that the momentum is upwards for the time being. Is it safe to go in? I would suggest nibbling at the dips as the market is not going to go up everyday.

end of day look at STI

Good evening, things looks better during the past few days. The STI clawed back about 170 points over the past 3 sessions to close at 2668; about 20 points above the previous low. The MACD looks like it is forming a bullish divergence pattern, with the STI making lower lows while the MACD making higher lows. To me, 2700 looks like strong resistance, so if the STI is able to close above that level, there is a good chance that we are seeing a turn-around in the stock market.

For now, stay cautious! But i think the time to buy is near.

end of day look at STI

Good evening, today was another day of fierce selling down after the STI broke the last minor support of 2650 (previous low). It now looks like the STI is headed towards the 2400 level. Stay defensive, and save your cash to reenter the market when it rebounds. It would be quite dangerous to pick the bottom because nobody knows where the bottom is.

end of day look at STI

Above is a daily candle stick chart of the STI. Support at 2700 is already broken, and now we are back to testing 2010's low of 2648. If this support fails to hold, we are looking at 2400 as the next support level. The overall picture is rather bleak. I think it is better to stay out until some measure of stability is seen in the markets.

end of day look at STI

Good evening, this was another down day for the STI. I just wonder how long the drama at EU will pan out. As for now, the STI continues on its sideways move, with bias to the downside. Support at 2700 is still holding for now. But looking at the price action for the past few weeks, it appears that the bulls are getting weaker and weaker as we have have been seeing lower and lower highs each time the STI bounced off support. Things will be quite ugly if the 2700 support is broken. I would suggest investors take a wait and see attitude for now.

end of day look at STI

good evening, above is a daily candle stick chart of the STI. Major trend, as shown by the 50day and 200day moving averages, is still down. However, the STI managed to stay above the 2700 level, and that is a good sign. Resistance is 2900. Until there is some clear resolution to EU debt crisis, i suspect that the market will continue to bounce between these levels.

a look at sti

Good evening, above is a daily chart of the STI. Major support is 2700, major resistance is 2900. The STI has been moving in a volatile, sideways movement since late Jul 2011. Key concerns now are the EU debt crisis, persistent high unemployment in US, and the US government's suit against 19 banks for fraud in their sale of mortgaged backed securities to Freddie Mac and Fannie Mae. Of immediate concern now is the EU debt crisis. Until that is resolved, i believe markets will continue to be volatile and weak.

STI and OCBC

Good evening, above is a daily chart of the STI. The market sold down after Moody's cuts Japan's rating by one notch to Aa3. The STI appears to be finding a bottom. Key support level is 2700. A break below that would signify further downside.



Above is a daily chart of OCBC. $8.645 is a key support level for OCBC. It managed to close above this level over the past three sessions, but today, it closed at $8.50. This is not a good sign and i think further downside risks remain for this counter.

end of day look at STI

Good evening, the STI was very volatile today, and went below 2700 points at one point in time. But the bulls came in and managed to push the STI above the 2700 level to close at 2731. The STI is extremely oversold now, but it has been making lower lows over the previous 4 sessions. The trend is still down and i would not regard today's session as a reversal signal. So i would recommend caution in the market as the psychology in the market seems to be a very violent sell down in the face of any negative news. Support for now is 2700 and resistance is about 2880.

end of day look at STI

Good evening, attached is a daily chart of the STI. Bad news continue to pour in. The latest being Eurozone GDP growth slowed to 0.2% Quarter on Quarter. That triggered a sell down in the markets. Market is extremely volatile lately, and momentum is still strongly on the downside. Support for the STI appears to be at 2800 while heavy resistance is at 2920.

End of day review of STI

Today was an extremely volatile session, with the STI swinging from a high of 2824 to a low of 2720 before closing at 2796. Even though the bulls managed to push the STI quite significantly off its lows, it still closed below what i would consider to be a psychologically significant 2800 level. Next significant support for the STI is about 2650; the previous low in May 2010.

end of day look at STI

Good evening, above is a daily end of day chart of the STI. The STI has broken a major support at 2920. Next support is 2800. Momentum is still down. Both short term and longer term trends are turning down.

end of day look at STI

The sell of in the equity market was more severe than i expected. The STI dropped more than 100 points today, ending at 2994, which is below a key psychological level of 3000. It has now dropped below the ascending support line. The next major support is at 2920, which is this year's low. Global stock markets are certainly facing strong head winds and i would suggest caution for investors at this point in time.