end of day look at STI, golden agri

Above is an end of day candlestick chart of the STI. The STI rallied in the afternoon on hopes that the threat of mass credit downgrades by S&P will force European leaders to quickly come up with a convincing framework in resolving the euro zone debt crisis.

Momentum, shown by the MACD, continues to rise. The MACD chart has been on an uptrend since late August, with it tracing higher lows so far. There appears to be some underlying strength in the market. The index has been oscillating around the 50day moving average, and the medium term trend is still sideways. The longer term trend is still down. Support is at 2700 and the next resistance is at 2900.





Above is a daily end of day candle stick chart of Golden Agri. It has continued to be on an uptrend since late September 2011. Both short term and longer term trends are up. Momentum is also up. Support at 0.70 has held over the past few days, so this appears to be strong support. Resistance is 0.745.

end of day look at STI, golden agri

Major news:

The US central bank, or Federal Reserve, agreed to provide cheaper dollar funding to the European Central Bank—which can then provide cheaper dollar loans to cash-strapped European banks. The goal is to ease the credit crunch in Europe.

Chinese stocks, which have been languishing in recent months, got a shot in the arm on Thursday after the central bank cut reserve requirement ratios (RRR) for all lenders by 50 basis points.


The outcome is the DJI rising by more than 4% to close above 12,000. Asian market thus gapped up when it opened this morning. But after that, trading became cautious and the STI basically went sideways after that. The STI is now at the 50day moving average line. I am not sure if it this will be the support or resistance. However, momentum is continuing to turn up. Support is about 2700, while resistance is about 2900.



Golden Agri continues to rise. Support is 0.695, resistance is about 0.745.

end of day look at STI, golden agri

Above is a daily candlestick chart of the STI. The STI seems to be turning around and managed to close above 2700 points. New few resistance levels are at 2750 (50day moving average) and 2900 (200 day moving average). Support is 2700 and 2636. Momentum is turning up.




Above is a daily chart of Golden Agri. It is one of the few counters that is currently trading above both the 50day and 200day moving averages. It managed to close above strong resistance of $0.70 and has also broken out of the long term downtrend line. In my opinion, this is a strong counter and worth watching.

end of day look at STI

Above is an end of day candle stick chart of the STI. I wonder if bargain hunters have started to come in upon news (subsequently denied) that IMF is in talks to support the Italian bond market. Whatever it is, the STI staged a rebound today, ending just shy of 2700 points. Major trends are still down, but momentum appears to be turning around.

end of day look at STI

Above is an end of day candlestick chart of the STI. The STI continues to head south. The 2700 resistance was broken today and it looks like it is headed towards the 2600 level. Momentum continues to fall, short term, long term trends are down.

end of day look at STI

Above is a daily chart of the STI. Another down day. EU leaders continue to squabble. And the US, their super committee looks unlikely to reach any meaningful agreement. Meanwhile, the market continues to tank. The STI is now slightly above the previous low pivot point at just below 2700. It will be interesting to see if this support holds. But momentum, medium term and long term trends are all down. Things do not look good.

end of day look at STI

Above is a daily candlestick chart of the STI. It does not looks good now. Support at 2800 has been broken. That leaves the next support at the previous pivot low, around 2700. MACD continues to fall, medium term trend (50day moving average) has turned down and the longer term trend (200day moving average) continues to be down.