Market View - DJIA, STI
DJIA tested the tentative up trendline ( the thick black line ) on Friday and closed above it. If the index continue to bounce up from here, the uptrend is not only intact but the tentative trendline will turn into a confirmed trendline with three touches. Conversely, if the up trendline is broken. We will be looking at the flatter thick blue line as support ( around 10,300 ). Take note that RSI continued to show bearish divergence since August, a caution sign on the potency of the uptrend.
Locally, STI may take cue from the triple digit plunge of DJIA. Key supports are 2,880 & 2,830. As previously stated, the current level where STI is trading is very near to Fibo 61.8% between Oct 07 high and Mar 09 low. The exact Fibo 61.8% is 2,980. This level will present the index with major resistance. But if the index is able to break above, it will signal sign of strength. Once that happen, we can look toward 3,250.
Stock Watch: IndoAgri at $2.16
SGX update: The buy trigger did not take place since our last post. What happen instead was that SGX has completed the return move which is common after a breakout. Buy trigger remains at $8.60
Labels: Market Direction
posted by Market Wizards @ January 17, 2010
Comments: 0
