STI - not looking so good

STI is not looking so good. Volatility is down, momentum is down, short term trend is down. Key support level is 3036. Once that fails to hold, we are looking at a correction to 2985. Right now, investors are waiting to see what ECB and the Fed are going to do next. I am afraid that if nothing substantial comes out, we are in for a major sell off.

tipping over? or buying opportunity?

Stock market was a bit more exciting today. The market gapped lower and proceeded to sell off hard. But after one hour of hard selling, buyers came back and pushed the index back to where it opened in the morning. Bargain hunters? Or do they know something we don't. As i write now, Europe is still down. Strong support is at 3041 and resistance is at 3088. But if this support fails, the next strong support will be at about 2990. There is a bearish divergence between the MACD and the index charts, so do trade cautiously.

Golden agri staged a remarkable rebound in the afternoon to close at the day's high at 0.72. The stock has been trading in a downward channel since mid July, but support at the moving averages is rather strong. Momentum is slightly up now. Support is at 0.700 and resistance is at 0.745.

Noble Group's price action is rather bullish now, having broken through all three moving averages. It's retracement over the past 3 days is healthy is looks like a good opportunity to take a long position. A long entry between 1.21 and 1.24 would be ideal, with the initial profit target of 1.29. A stop could be placed at 1.19 since 1.21 is a support level.

Gentng is also doing a bit of a retracement, but the stock is still a bit stuck, with resistance at the middle moving average. Price action is a little bullish and a good long position is at 1.305, with an initial price target of 1.38. Initial stop should be placed at 1.23.

national day correction?

After hitting a 2012 high of 3086, the STI has been weak over the past 2 days. It closed 3052 today. Support looks to be at 3040 and resistance is at 3086. Momentum is slightly down, but trend is still on the upside.

golden agri saw heavy selling today and the share price fell from the open at 0.725 to a low of 0.690 before closing at 0.700. I am not too sure of the reason for the big drop, but is probably due to rising inventory levels of CPO (crude pail oil) and falling demand. I was rather bullish on this stock since early july but I am not so sure now as the technical picture is not so positive. It has already broken what looks like support at 0.705 to me (the meeting of the moving averages), so it is best to see where is the next support before deciding on jumping into this trade. Initial support looks like 0.690, resistance is at 0.74.

Noble group, on the other hand, seems to have found support at 1.05 and is staging a rebound. It has broken through both the short and medium term moving averages and looks set to head towards the longer term moving average. Resistance is at 1.175, support is at 1.05.

STI back to 3050

The STI gapped down at the open, mirroring the weaker closes of the US markets, but soon found its footing later in the afternoon. I am looking for it to go to 3100 soon. Support is at 3016.

Golden Agri also had a weak open and at one point in time was sold down to 0.71. But it rallied in the afternoon to close at 0.725. Resistance is at 0.745.

Capitaland rose strongly today on high volume to close at 3.12. Support is at 3.00. First target is 3.155, second target is 3.20. This stock is outperforming the STI.

Genting rose slightly on high volume. The larger trend of Genting is still down, but momentum is going higher. It seems to have found some support at 1.285. There is some resistance at 1.32, and the next resistance is at 1.41.

STI breaks through 3040

Yes! STI has broken through its previous high of 3040 and i think will head towards 3100 (the 161.6% fibonacci projection). Support looks to be around 3020.

Capitaland has also broken through 3.00, and is headed towards 3.155 (the previous pivot high). Support is about 2.95.

Golden Agri is rather disappointing today. I had expected it to continue going up to 0.78, but it instead fell to 0.72. Support remains at 0.705 and my short term target for this stock is 0.78.

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.