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.