end of day look at STI, olam, sembmar

Above is an end of day chart of the STI. The STI performed strongly again today and closed at the previous pivot high of around 2910 again. The trend is now strongly on the upside. The next resistance is at 3000 points. Initial support should be at the 200d simple moving average line of about 2850.



Above is an end of day chart of OLAM. Olam has outperformed the STI. It has broken through the previous pivot high of 2.62 and managed to close above it for the past three days. It's momentum is also strongly upwards. Next resistance is around the $3.00 level. Support is about 2.50.




Above is an end of day chart of Sembmarine. The offshore and marine sector is performing extremely well lately. It has burst through the previous pivot high of $4.38 It is currently experiencing resistance at $5.00. Next level of resistance is about $5.50. Support is $4.60.

sti - weekly look

Above is a weekly chart of the STI for a longer term perspective of the STI's trend. Since the double bottom in late 2008/early 2009, the STI has had a pretty decent run up until late 2010, when the STI traced out a double top. From the weekly chart, it does seem like the STI has made another double bottom; one in July and another in November 2011. The stock market has roared up with a vengeance and not surprisingly, most retail investors are not jumping in as all they read in the newspapers are stories of gloom and doom. It also does not help that 2011 has been a down year and that each promising rally has been beaten down by the bears time and time again. But now we have hit a major resistance of the previous pivot high of about 2900 points. I expect some correction here but i see this as a healthy correction and a good time to accumulate blue chip stocks.

breakout - STI

Above is a daily end of day chart of the STI. Yesterday, the STI staged a massive rally that took it pass the major pivot high of 2791. There was a pull back today, as participants took profit. The STI managed to stay above 2791, which is a good sign. There is quite a major change in trend now. After making a series of lower lows last yesr, the STI has just managed to make a higher yesterday. The medium term trend is now up, while the longer term trend is still down. Momentum is strongly on the up side. This appears to be a good time to load up on stocks. However, most investors will be wary of going long now after experiencing the very severe down trend from late October last year. I do wish to point out that despite the downgrade of sovereign bonds in many EU countries, the market refused to go down. The US markets have been in a strong uptrend for some time already, and HSI is also turning up.

The bulls are starting to re-exert themselves in the market.

Change of trend - STI

Above is an end-of-day chart of the STI. There has been a significant change in trend in the STI. Today, it managed to close above the 50-day moving average, so the medium term trend has shifted rapidly from a down trend to an uptrend. 2700 also looks to be significant support for now. I think it is a good time to look into entering the market. Oil and gas counters like semb marine, keppel corp and ausgroup are seeing significant upticks in price and volume. Property counters, especially with strong presence in China, like Yanlord, YingLi, Capitaland are also seeing strong volumes and price increases.

The tide appears to be turning now.

end of day look at STI and golden agri

The STI hit resistance at the 50-day moving average line, retraced, and looks like it is poised to retest the resistance again. Support at 2700 looks firmer. Momentum is up, medium term trend, represented by the 50-day moving average line, is now sideways. Longer term trend is still down. The next resistance level is about 2800 (around the previous pivot high).



Golden agri is holding up well and is inching towards the previous pivot high of about 0.750. Support now is about 0.72 and my upside target is 0.82 (the previous high).

breakout: golden agri

Alert! Golden Agri has hit a four-week high. It is normally a sign that it will continue to trend up. It has been slowly trending up since Oct 2011, but hit major resistance of about 0.72 before closing above that yesterday. It closed at 0.73 today.




The STI is still stuck in a downtrend, but the momentum is turning up.