will STI break through this time?

Very volatile day for the STI today. It gapped down at the open, and then slowly powered up to close near major resistance again. I think the STI will break this level very soon.

Golden agri has bounced off nicely at 0.705 and is headed towards 0.780.

Capitaland has broken 3.00 and should be headed towards 3.155. Support is at 2.865.

Noble group fell off support of 1.05 to a low of 1.02. It recovered over the past 4 days to close at 1.075. The is a bullish divergence between the share price and the MACD, so indications are that the price is headed higher. But there are many resistances to overcome, namely the three moving averages. So for now, support is at 1.05, resistance is at 1.10.

Bears win today

The bulls really got killed today. We opened very optimistically today, but again, we got sold down in the afternoon to close just at the 61.8% fibonacci retracement level. The major trends are still up, but momentum is down. It looks ugly, but I think any retracements should be a good buying opportunity. But please buy only the uptrending stocks on retracement. Support for the STI is now down to about 2971, which is also the level of the shorter term moving average. Strong resistance at 3030.

What do i mean when i say buy only uptrending stocks on retracement? Have a look at the chart of Wilmar above. I am showing a weekly chart to give you a better overall view of the major trend. This stock has been trending down since 2010, at a peak of $7.29. It did find some support at $6.00, then about $5.25 and after it broke $4.50, its downtrend suddenly accelerated. I do not know the reason for such weakness in Wilmar's share price, but to me, the only good way to trade wilmar is on the short side. Technically, resistance is around $3.88, but it looks like the stock is headed towards $2.94 (the next Fibonacci retracement level).

Here is a chart of Golden Agri, which is in a similar business to Wilmar, which is processing CPO (crude palm oil) into edible oils. I am only showing a daily chart here, but you can see from the relative position of the prices to the multiple moving averages, and also the recent price action, that it is on an uptrend and has been retracing for the past 5 days. Support is at 0.705, and today's price action looks rather bullish as it closed above yesterday's close. Support is at 0.705, with resistance at 0.78.

STI - good start, but faded at the close

The uptrend for the STI seems to have resumed, but i suppose news from Europe was not so good, and hence the sell down. i think the new support level is 3000, and resistance remains at 3040.

Commodities is looking less and less attractive by the day. Here is a daily chart of Golden agri. It has been coming down for the past 5 days with no sign of a reversal yet. Support looks to be at 0.700, where the mid and long term moving averages are. Short term resistance is 0.73.

With commodities losing favour, where is the money going to? Once sector looks to be property development. Above is a daily chart of Capitaland. It has been going up for the past 3 days and is testing resistance at $3.00 again. Look to go long once it breaks out of $3.00 with an initial target of $3.155

When will this correction end?

Here's a look at the STI. It hit a top of about 3040 four days ago and went down hard for 2 days, and is going sideways for the past 2 days. That looks good. Support looks to be around 2970 (the 38.2% Fibonacci retracement) and MAJOR resistance is 3040. Momentum is down, but i think if the STI is able to close above 3000 points tomorrow, we should be headed higher towards 3040 and retest the high!! It seems rather interesting how the bad news about the Eurozone crises is released just when the STI hit heavy resistance of about 3030.

Commodity stocks have been taking a beating over the past few days. Golden Agri has fallen for four consecutive days. Support is around 0.715 (the 23.6% fibonacci retracement level), 0.710 (the previous pivot high) and 0.705 (the medium and longer term moving averages). Resistance is 0.78 (the most recent high). Momentum is falling, but price should be supported by the moving averages.

The price action for Noble Group has gotten rather ugly. It broke previous support of 1.08 about 6 days ago and two days ago broke major support of 1.05. The next support is mostly likely to be a psychological 1.00 level. The major trend for this stock remains down.

Genting remains a favourite counter for many looking for a bargain. But its price action is extremely weak. It has broken through a major support level at 1.305 and it looks like it is headed to 1.20. Major trend is down.

End of day look at STI and Genting SP

Above is an end of day chart of the STI. The momentum is falling and it is starting to retrace. This looks like a good buying opportunity. Support is around 2980 and resistance is 3030.

Above is an end-of-day daily chart of Genting SP. It has been on a relentless downward slide since breaking about 1.65 on the downside. There appears to be some support at 1.305.

sti makes a 2012 high?

It does look like the STI has hit the year's high, but turnover seems suspiciously low. Top gainers are banks, SIA, Keppel Corp, sembcorp and big property developers like Capitaland and CDL.

Golden agri is still struggling to break 0.78. It was a weak day for this stock, but finished quite strongly at 0.77. Good support at 0.76. Resistance at 0.78.

Capitaland is still trapped in a box range, between 3.00 and 2.90.

end of day look at STI, plus Golden Agri, Capitaland and Genting SP

The advance of the STI is very relentless. We are up again, and has hit or is very close to hitting the multiple tops around 3030. What i see, and probably what everyone can see, is that this is heavy resistance and it is very likely that the STI will retrace before making a decisive push past the 3030 level. Momentum is falling, but longer term trend is up as all the moving averages have turned up.

After closing slightly above major resistance of 0.72 yesterday, Golden Agri powered up today on very high volume to close at 0.76. Support is now at 0.735, resistance is at 0.78

Capitaland is still trapped in a box. Trend is up, support is at 2.90, resistance is at 2.99.

Genting's chart is quite ugly for those looking to go long or are on the long side. It is on a confirmed down trend, with price below all three moving averages and all three moving averages are pointing down. Insiders are obviously selling the stock, and you can see that everytime the price stages a brief rebound, it goes on another leg down. News from the press is that RWS is being investigated for offering rebates to offset the levy charged to Singaporeans. If true, then RWS could be looking at some heavy fines. I also believe that some analysts are not so keen on them bidding for a stake in Echo as the returns may not be so attractive. I do not know the real reason behind the share's weakness, but whatever it is, it is best to stay away from going long until some support is shown.

resistance at 3000 points

The STI finished up at 2998 after hitting an intraday high of 3004. Momentum is easing off, and without big boys doing the heavy buying, most people are taking a wait-and-see attitude. It looks like the STI will consolidate for a short while before gathering enough strength to push through the 3000 mark.

Capitand has retraced quite significantly from its previous high, but the lows are still getting higher and i think it is a matter of time before it break out of 2.99. Resistance for Capitaland is at 3.00 and support is at about 2.865.

Golden agri managed to close above the heavy resistance of 0.72, albeit at a relatively low volume. The ideal entry into Golden Agri would be a retracement to about 0.70 because support is strong at that level. Resistance is at 0.735.

some strong stocks

Above is a daily end of day chart of the STI. The uptrend of the STI is extremely strong and well behaved (technically). There was a nice 38.2% retracement in late June, and after that, it went up to the 100% level, broke it and hit the 161.8% target before retracing for only one day. Another strong day today to close at 2989 points. I drew the resistance at 3005 because that was the level of the previous support. That is also approximately the mean of the multiple tops encountered during the first half of 2012. Now 3000 points is an extremely key level given that we failed to penetrate it convincingly this year. But i would hesitate to short it because it appears to be the most obvious trade. I do believe the STI will surprise to the upside. But for now, resistance is 3005 and support is at 2909.

Capitaland is now rather firmly on the uptrend since both the shorter and longer term moving averages have turned up. MACD has also turned positive. An extremely good trade would be to go long at the 61.8% fibonacci retracement yesterday. The region between 2.85 and 2.90 is good for a long position. Look for pull backs into this region. Support is at 2.86, resistance is at 3.00.

Another stock now in an uptrend is Golden Agri. All the key moving averages have turned up, plus the MACD is also now in positive territory. However, it seems to be trapped in a box range bounded by 0.720 and 0.695. It would be good to go long either on retracement back to 0.695 or on a breakout of 0.73.

HUGE move up for the STI

I was quite surprised by the strength of the STI today as it broke strongly out from yesterday's close of 2909. I noted that this is a key level as it was the previous pivot low before the long move down to 2698. The STI looks headed towards the 161% fibonacci extension to about 2965. 2900 should be the new support now. If we manage to break 2965, then we are headed towards multiple resistance of about 3000 points. Amongst the top volume counters are Noble group and Golden agri. Golden Agri is performing extremely extremely well, and i think it would be good to accumulate on pull backs. Capitaland is also staging a strong rebound. This is also a stock which i think is worth looking at and accumulating on pull backs.

breakout?

The STI performed very strongly today and closed just at the previous pivot low at about 2909. Momentum is strongly on the uptrend. I suspect the market may pull back to the previous pivot high at 2866 before pushing up to 2966.

Above is a daily chart of OLAM. It performed extremely strongly today to close at 1.90. It looks like a good candidate to go long, with a target of 2.00 and s stop at 1.80.