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.
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