Genting SP - about to breakout?

A quick look at Genting SP. Above is a daily chart. Genting appears to have found support at $1.85, and looks to be poised for a strong rebound. Double bottom formed in Feb and Mar 2011, with a corresponding bullish divergent MACD. Resistance zone is at the 50d moving average line of about $2.00 and previous pivot high of $2.03. Confirmation of breakout would be a close above $2.03.

update on STI and Noble Group

Quick update on STI:

Today's price action is positive. Momentum appears to be driving STI up now. The case of a bullish divergence, whereby the STI makes a lower low while the MACD makes a higher low appears to be taking shape. If this positive momentum continues, the next resistance is at 3060 (where the 200day moving average has been hovering since mid Feb 2011. Support is at swing low of 2920. This may be a good time to go bargain hunting.




Above is a daily chart of noble group. Price action is more bullish than the STI chart as Noble Group is still trending above the 200day moving average line, meaning that the long term trend is still up. However, it is trending below the 50day moving average, so short term is down. But the bullish divergent picture is forming nicely, and the momemtum is moving nicely upwards. Resistance is about 2.12 (the 50day moving average line). Once it is able to close above that, then the tide will really be in Noble Groups favour. It looks like a good time to start accumulating this stock.

something brewing at noble?

Above is a weekly chart of noble group. In general, it has been on a downtrend since Jan 2011, and has retraced about 50% from that high. On a longer term picture, it appears to have found support at the 50week moving average line. This also corresponds to some support at the 50% Fibonacci retracement level.




On a daily chart of noble group, the trend based on the 50day and 200day moving averages is that of a sideways trend, with the price between the two lines. However, looking at price action coupled with the MACD indicator, it appears that a bullish divergence is forming, with the MACD forming a higher low whereas the price made a lower low on the 15 mar 2011.

Indications are strong that a reversal in noble group is happening. Support is at $2.00 with initial resistance at the previous low of $2.14.

comments on STI

The trend for the STI has been down since the start of 2011. It started at a peak of about 3280 on 6 Jan 2011 and reached a low of 2932 on 15 Mar 2011.

Is it a good time to go bargain hunting now? The STI is now trending below both 50day and 200day moving averages. A minor rally from late February managed to break above the 200day moving average line, but turned down at the 50day moving average at 3100 then. Hence the 50day moving average is acting as a strong resistance for now.

However, the MACD paints a different picture. The STI made a lower low on 15 Mar 2011 compared to the low on 24 Feb 2011. But, the MACD appears to make a higher low. This is what is known as a bullish divergence and there is a strong chance that the STI will rally from this new low. Key condition for this to happen would be for the STI to close above 3000 points soon.

end of day picture for STI

Good evening, a quick update on today's market action. The overall technical picture is divergent; MACD indicating that the momentum is on an uptrend, while the moving averages show that the market is trending sideways. Near term support appears to be on the 200d Moving average, which is around 3060. Resistance is at the 50d moving average and previous support at 3120.

A snapshot of today's action

Today's candlestick price action of the STI is a 'gravestone doji' - not a good sign. Short term resistance is 3060, support is 2980. The 200dMA line is now acting as a strong resistance. Both 50dMA and 200dMA are turning down, so the trend of the STI appears to be down. However, the MACD indicator appears to have bottomed out and is turning up, so the overall picture is mixed. In my opinion, the STI needs to close above both the 50D and 200D moving average in order to signal a change in the downtrend.




The picture for Noble Group is more positive. Both the 50Day and 200Day moving averages are on an uptrend, the price has closed above the 50day moving average during the past 3 days and the MACD has bottomed out and is turning up.
The resistance now is $2.12 and it looks like an entry around the 50d moving average (about $2.16) represents a good low risk entry.




The picture for GoldenAgri is also quite positive. The price appears to have found support at $0.61 and has made its way above its 200day moving average line. It appears to have found resistance at its 50day moving average, having bounced off the line on 2 occasions. Momentum as shown by the MACD is back on an uptrend and i think any weakness in price represents good opportunity to enter a long position.

STI - support broken

Today's close for the STI is not good. In fact, the break below support at 3060 is a very bad sign. Today, the STI broke below the key 3000 points psychological level to close at 2973 points. The STI has now closed below the 50% fibonacci retracement level and below the 200day moving average.

Both short term and long term trends have now turned down and i would suggest longer term investors wait for a reversal before jumping in as we dont know how long the downtrend will last.

Next minor support is at 2946 and next major support is at 2900 points.