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.
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