2,480 Support !
Regional bourses plummeted Monday :
As of the time this blog was written ( 8:30pm ), Dow future was triple digits in the red. If Dow ended the day with triple digital plunge, we may see some more downside tomorrow. 2,480 looks set to be a strong support. This level is confluence by the following:
1. Uptrend line support2. Gap support
3. 40 days simple moving average support
4. Aug 4 ( 2,700 ) - Aug 7 ( 2,542 ) = 158 points
... Aug 14 ( 2,647 ) - 158 points = 2,489
If the market ever get there ( 2,480 ~ 2,500 ), it could be a good entry for rebound play ! The rebound may take the index back to 2,580 ~ 2,600. I am ready to take the calculated risk too !
Olam
IF $2.4 holds, it is looking attractive. Anything below $2.40 is not a good idea ! So maybe let it test $2.40 and buy when it bounces back to $2.45?
IF $2.4 holds, it is looking attractive. Anything below $2.40 is not a good idea ! So maybe let it test $2.40 and buy when it bounces back to $2.45?
Why I pick Olam is because this is one of the stocks where the uptrend line is still intact. Many other stocks the uptrend lines have already been violated. Volume / distribution chart shows sellers are weak hands whereas buyers are strong hands. This is the opposite of the many counters I have reviewed such as Capitaland, Kepland, SGX, Noble, Wilmar, Yanlord, IndoAgri, SingTel....etc. The sellers are strong hands, buyers are weak hands.
Labels: Market Direction, Stock Pick
posted by Market Wizards @ August 17, 2009
Comments: 0
