Olam, Capitaland, STI

Above is a weekly chart of the STI because I wanted to show the larger trend of the STI. Things do not look so good. The STI struggled from August to stay above the very key support of 2640. From the weekly chart, we can see that the STI has been in a down trend since Oct 2010. If the STI weekly chart were to close below 2600, the downtrend could be very severe. Let us see how things unfold in 2012.

Below are weekly charts of Capitaland and Olam. I have decided to highlight these two charts because they are showing extremely weak price action and trends.




Above is a weekly chart of Capitaland. It closed below a key support of 2.275. Capitaland has been on a downtrend since October 2011. It looks like it is approaching the lows of 2009 of $1.785. It is best to avoid buying this stock until it finds support.



Above is a weekly chart of Olam. It looks dangerously close to breaking support of around $2.13. I also would suggest not buying this counter unless it rebounds convincingly from this level.

end of day look at STI

Dear clients, the market has been very quiet in December 2011. The STI closed up today on quiet trading and is headed towards resistance of 2700. Momentum is turning up, but middle term and long term trends are down. Support remains at 2600.

end of day look at STI

Good evening. unfortunately, it was another quiet day today. US markets closed higher on upbeat US and German data, and strong sales of Spanish Bonds. The STI gapped up and closed the day higher at 2673. Support at 2600 held, but the overall trend is still down, with the STI making lower lows and lower highs since Oct 2011. Resistance is 2700. It is best to remain cautious.

end of day look at STI, capitaland

Another down day for the STI. I see continued weakness for the STI. Momentum is down, 50day moving average is showing down trend, 200day moving average continues to trend down. It has also closed slightly below the previous pivot low of 2640; and it is not a good thing.




After the announcement of our government's property cooling measure, naturally, property counters took a big hit. It closed just above the previous pivot low of $2.75. It looks a bit like a hammer, but not quite and I am wondering if it will find support at this level.

In summary, the overall trend of the market is down, but prices of most counters are at major support / pivot levels, so a technical rebound looks possible.

end of day look at STI

Another quiet day today. I really wonder what is happening in EUROPE. Anyway, what does the chart of the STI say? The momentum of the STI has now shifted to the down side, the 50day moving average has turned back down and the 200day moving average continues on its downtrend. 2700 has now turned resistance and it looks like we are in for weak days ahead. Next support is around 2630.

end of day look at STI, golden agri

Above is an end of day candlestick chart of the STI. The STI rallied in the afternoon on hopes that the threat of mass credit downgrades by S&P will force European leaders to quickly come up with a convincing framework in resolving the euro zone debt crisis.

Momentum, shown by the MACD, continues to rise. The MACD chart has been on an uptrend since late August, with it tracing higher lows so far. There appears to be some underlying strength in the market. The index has been oscillating around the 50day moving average, and the medium term trend is still sideways. The longer term trend is still down. Support is at 2700 and the next resistance is at 2900.





Above is a daily end of day candle stick chart of Golden Agri. It has continued to be on an uptrend since late September 2011. Both short term and longer term trends are up. Momentum is also up. Support at 0.70 has held over the past few days, so this appears to be strong support. Resistance is 0.745.

end of day look at STI, golden agri

Major news:

The US central bank, or Federal Reserve, agreed to provide cheaper dollar funding to the European Central Bank—which can then provide cheaper dollar loans to cash-strapped European banks. The goal is to ease the credit crunch in Europe.

Chinese stocks, which have been languishing in recent months, got a shot in the arm on Thursday after the central bank cut reserve requirement ratios (RRR) for all lenders by 50 basis points.


The outcome is the DJI rising by more than 4% to close above 12,000. Asian market thus gapped up when it opened this morning. But after that, trading became cautious and the STI basically went sideways after that. The STI is now at the 50day moving average line. I am not sure if it this will be the support or resistance. However, momentum is continuing to turn up. Support is about 2700, while resistance is about 2900.



Golden Agri continues to rise. Support is 0.695, resistance is about 0.745.