Wednesday, August 24, 2011
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.
Monday, August 22, 2011
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.
Tuesday, August 16, 2011
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.
Thursday, August 11, 2011
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.
Monday, August 8, 2011
end of day look at STI
Friday, August 5, 2011
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.
Thursday, August 4, 2011
end of day look at STI
Good evening, i was rather excited when the STI broke out of the triangle pattern on 22 July as i thought it signaled the start of a strong uptrend. But as it turned out, economic numbers show that growth is starting to slow again. More alarmingly, the STI has now fallen back into the triangle pattern again, and it looks like the upper slope of the triangle is acting as resistance, with the bottom slope acting as support. The MACD has turned sharply down, so the near term momentum is down. Longer term trend, as shown by the 200-day moving average, is still up. Initial support is at 3100, next would be 3078. Resistance is at 3130.
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