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.
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