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Sunday, October 11, 2009

DJIA Near Resistance

The local market continued to move sideways and dominated by penny stocks. The top active counters become more and more niche lately! Ying Li, Ramba, ZWO, EcoWise, Seroja....etc. are among stocks that steal the limelight. I am not sure about you, but I have not heard of them before. I am apprehensive to chase them ( despite that these are the counters recommended by my remisier in the daily SMS ) because I worry as soon as I enter the party is over and I will be stuck with them forever. But if you are fine with that, these are the counters you can make some quick money. Just browse through the top volume counters each day and pick anyone that you have not heard before but are climbing, no need technical analysis !

DJIA is near resistance now. We need to watch closely how it reacts to the last significant high at 9,937. Failing to break beyond may cause the index to retrace back to 9.635 and 9.450. If it is able to break 9.937 decisively, we may look forward to 10,800 before year end.

For STI, many chartists have expressed concern that the sideways movement appears to have shown a series of lower peaks & troughs ( lower high, lower low ). I shared the same concern but on the other hand I noticed the Kagi chart seems to provide a glimpse of light! Kagi is showing an impending breakout ( buy signal ) should STI is able to edge up slightly more.