market wrap up: STI and Genting SP

Just a quick look at the STI after today's close. Above is a daily chart of the STI. It closed strongly above the 50-day moving average; a good sign, but is encountering strong resistance at the 3112 level (previous swing high and multiple support level in the past). Momentum is still strongly upwards, support is around 3060.



Above is a daily chart of GENTING SP. It put in a strong showing today, breaking above the $2.03 resistance on high volume to close at $2.07, while at the same time also closing above the 50-day moving average. Momentum is also strongly upwards, with next resistance at about the $2.20 level. Immediate support is at $2.03 (previous resistance), but the next support is at $1.86 (the previous swing low).

update on sti and a look at noble, capitaland and genting SP

Today, the STI closed above the 200day moving average and below the 50day moving average. Momentum is still strongly upwards. Immediate resistance is at the 50day moving average line and next would be the previous swing high of around 3110.



Genting SP's upward momentum is extremely strong now. It has broken through the 50day moving average and previous swing high of $2.04 to close at $2.05. Next resistance is at $2.20.



Noble Group's upward momentum is also very strong. It also closed above the 50day moving average line. Next resistance is at the previous swing high of $2.25.




In great contrast to the previous stocks, Capitaland is still on a sideways trend with a bias to the down side since it has broken support of $3.50. Above is a WEEKLY chart (the rest are DAILY charts), which show that the price of Capitaland has been sideways since the middle of 2009. Volume is strong today, which is why i am highlighting this counter, but it really is not a pretty chart.

A look at 3 active counters

Above is a daily chart of Golden Agri. After making a double bottom around $0.620, it has rallied strongly to close just below resistance of the 50day moving average and the previous swing low of $0.690. Momentum, as shown by the MACD, is bullish.




Here is a chart of COSCO Corp. Overall picture is not as bullish as Golden Agri. The price is still below the 200day moving average and is facing resistance at that level, which also corresponds to the previous swing low. Momentum is only just starting to turn up. If it manages to break above the 200day moving average, next resistance is at $2.00




Olam made a strong showing today. Momentum is upward, but it is facing strong resistance of the 50day, 200day moving averages and previous swing high at around $2.84.

STI - gaining strength

Good morning, STI is gaining strength, now that it has cleared the 3,000 points mark. MACD is turning more positive. Resistance is expected to be at the 200d moving average line at 3060.

Many STI component stocks are turning up, especially these few, on high volume: Genting SP, Golden Agri, Noble Gp, Olam, Indo Agri, Cosco.

Genting SP - about to breakout?

A quick look at Genting SP. Above is a daily chart. Genting appears to have found support at $1.85, and looks to be poised for a strong rebound. Double bottom formed in Feb and Mar 2011, with a corresponding bullish divergent MACD. Resistance zone is at the 50d moving average line of about $2.00 and previous pivot high of $2.03. Confirmation of breakout would be a close above $2.03.

update on STI and Noble Group

Quick update on STI:

Today's price action is positive. Momentum appears to be driving STI up now. The case of a bullish divergence, whereby the STI makes a lower low while the MACD makes a higher low appears to be taking shape. If this positive momentum continues, the next resistance is at 3060 (where the 200day moving average has been hovering since mid Feb 2011. Support is at swing low of 2920. This may be a good time to go bargain hunting.




Above is a daily chart of noble group. Price action is more bullish than the STI chart as Noble Group is still trending above the 200day moving average line, meaning that the long term trend is still up. However, it is trending below the 50day moving average, so short term is down. But the bullish divergent picture is forming nicely, and the momemtum is moving nicely upwards. Resistance is about 2.12 (the 50day moving average line). Once it is able to close above that, then the tide will really be in Noble Groups favour. It looks like a good time to start accumulating this stock.

something brewing at noble?

Above is a weekly chart of noble group. In general, it has been on a downtrend since Jan 2011, and has retraced about 50% from that high. On a longer term picture, it appears to have found support at the 50week moving average line. This also corresponds to some support at the 50% Fibonacci retracement level.




On a daily chart of noble group, the trend based on the 50day and 200day moving averages is that of a sideways trend, with the price between the two lines. However, looking at price action coupled with the MACD indicator, it appears that a bullish divergence is forming, with the MACD forming a higher low whereas the price made a lower low on the 15 mar 2011.

Indications are strong that a reversal in noble group is happening. Support is at $2.00 with initial resistance at the previous low of $2.14.

comments on STI

The trend for the STI has been down since the start of 2011. It started at a peak of about 3280 on 6 Jan 2011 and reached a low of 2932 on 15 Mar 2011.

Is it a good time to go bargain hunting now? The STI is now trending below both 50day and 200day moving averages. A minor rally from late February managed to break above the 200day moving average line, but turned down at the 50day moving average at 3100 then. Hence the 50day moving average is acting as a strong resistance for now.

However, the MACD paints a different picture. The STI made a lower low on 15 Mar 2011 compared to the low on 24 Feb 2011. But, the MACD appears to make a higher low. This is what is known as a bullish divergence and there is a strong chance that the STI will rally from this new low. Key condition for this to happen would be for the STI to close above 3000 points soon.

end of day picture for STI

Good evening, a quick update on today's market action. The overall technical picture is divergent; MACD indicating that the momentum is on an uptrend, while the moving averages show that the market is trending sideways. Near term support appears to be on the 200d Moving average, which is around 3060. Resistance is at the 50d moving average and previous support at 3120.

A snapshot of today's action

Today's candlestick price action of the STI is a 'gravestone doji' - not a good sign. Short term resistance is 3060, support is 2980. The 200dMA line is now acting as a strong resistance. Both 50dMA and 200dMA are turning down, so the trend of the STI appears to be down. However, the MACD indicator appears to have bottomed out and is turning up, so the overall picture is mixed. In my opinion, the STI needs to close above both the 50D and 200D moving average in order to signal a change in the downtrend.




The picture for Noble Group is more positive. Both the 50Day and 200Day moving averages are on an uptrend, the price has closed above the 50day moving average during the past 3 days and the MACD has bottomed out and is turning up.
The resistance now is $2.12 and it looks like an entry around the 50d moving average (about $2.16) represents a good low risk entry.




The picture for GoldenAgri is also quite positive. The price appears to have found support at $0.61 and has made its way above its 200day moving average line. It appears to have found resistance at its 50day moving average, having bounced off the line on 2 occasions. Momentum as shown by the MACD is back on an uptrend and i think any weakness in price represents good opportunity to enter a long position.