end of day look at STI

Another quick look at the market. Today's close formed a 'dark cloud cover' candlestick patter. This is a bearish reversal pattern. Which is good, because it gives investors and traders a chance to get in when price retraces. Support for the STI is about 2800, resistance is at 2900. Medium trend is up, long term trend is sideways, momentum is up, but falling. I think it would be a good strategy to go long on dips.

end of day look at STI

A quick look at today's action. Volume was low today. Short term trend of the STI is up, Longer term trend is sideways, momentum is still up. Resistance is at 2900, support is at 2780. A break above 2900 would be extremely significant. For now, the STI appears to be stuck in a trading range.

a look at STI, Golden Agri and OCBC

First, a commentary on the broad market - the STI. Despite the uncertainty posed by Greece's decision to hold a referendum on the austerity measures to be imposed on the country, the STI managed to close above the 50day moving average. This further strengthens the support of its 50day moving average. Also note that the 50day moving average appears to have bottomed out and is now turning up. The 200day moving average also looks to have flattened. So the shorter term trend of the STI is upwards, while the longer term trend has gone from down to sideways. The STI needs to close above the 200day moving average to confirm that the longer term down trend has reversed.




Commentary on Golden Agri. Golden Agri is performing strongly and has been steadily climbing from its lows of about $0.55 in late September. The price has closed above its 200day moving average, but heavy resistance is seen first at $0.685 and then at $0.70. I do expect a strong uptrend from this counter once it manages to clear these two key resistance levels.





Commentary on OCBC. Banks have not been faring well as that sector is still facing uncertainties in the banking sector in Europe. The short term trend though improved, is still down. The longer term trend is also down. Momentum has been rising since early October, but appears to be stalling. The 50day moving average, in this case, appears to be acting as a resistance instead of as a support. I really would not recommend getting into the banking sector for now.

50day Moving Average provides strong support

Watching and reading about the drama unfolding in Europe is painful and confusing. So i prefer to look at the charts. What do i see? I attach a daily chart of the STI and two others to highlight what seems to me to be a turn around of the STI in general.

First, note that the STI has broken through the 50day moving average and that the 50day moving average is turning up. This shows that the short term trend is up. Second, after 2 days of consolidation, in which the STI fell briefly below the 50day moving average today, strong buying pushed the index up to close above the 2800 mark. Resistance is still at 2900, support at 2800.

The two other stocks shown here - capitaland and Genting, are also showing strong support at their 50day moving average.

Commodity stocks like Golden Agri and Noble group have also rebounded strongly.

end of day look at STI, noble group

Good evening, the market went super bullish today. Perhaps the STI is playing catch up with the rest of the world since it was closed yesterday. The STI broke through the 50-day moving average strongly on very high volume. Short term trend has turned up, momentum is still strongly up. Longer term trend, based on the 200-day moving average, is still down. Initial support is 2770 (base of 50-day moving average), next support level is 2700. Resistance is between 2900-2940 (next round number and the bottom of the 200-day moving average).




Above is a daily chart of Noble Group. Its behavior is similar to the STI. It broke strongly above the 50-day moving average today on very high volume. Resistance is about $1.70, support is $1.485. Short term trend is upwards, momentum is up, longer term trend is still down.

end of day look at STI

Good evening, above is a daily end-of-day chart of the STI. Resistance for now is the 50-day moving average. For me, it is good that the STI took a breather after rising for 8 days in a row. For the week, support at 2700 held, which is good. The STI is now moving sideways and it looks to me that a bottom at about 2530 has been formed. So for now, momentum is upwards, short term trend is sideways, longer term trend is still down. Key support levels are 2700 and 2650. Key resistance levels are 2770-2800 (50-day moving average line and previous high) and 2900. I think longer term investors can buy on dips.

end of day look at STI

Good evening, above is a daily, end of day chart of the STI. The STI appears to have comfortably broken through the 2700 resistance and is trending strongly upwards. It has hit resistance at the 50-day moving average and appears to have pulled back a little. Shorter term trend, as shown by the 50-day moving average, it turning to the upside. Longer term trend, shown by the 200-day moving average, is still down. Momentum is strongly to the upside.