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.