Above is a weekly candlestick chart of the STI. The STI has spent almost 7 weeks between 2900 and 3030 points. We only managed to close above 3000 points last week and we closed just about 3000 points today. From what i can see on the weekly chart, we are in an uptrend; the STI is above both the 200 and 50 period moving averages, MACD is on an uptrend, but the momentum is falling. But we seem to be in a holding pattern. Volumes are down and there seems to be plenty of uncertainty moving forward. The best strategy now appears to be to buy on dips, but since there is so much uncertainty and scepticism around, i suspect most people are on sidelines.
i was scanning the top volume counters and noticed that companies involved in offshore and marine business are enjoying pretty good runs. One of them is Ezion Holdings. The weekly chart is above. It enjoyed a pretty powerful rally since its breakout from a descending trendline, which started first by breaking the 200, followed by the 50 period moving averages. It broke above its previous high of 0.890 in mid Feb 2012, peaked at 0.97 before being sold down upon news of a rights issue. It has since recovered and has managed to stay above 0.890 for the past 3 weeks. It looks like it is consolidating for another breakout.
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