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Sunday, October 31, 2010

STI and IndoAgri

STI closed with a bullish engulfing candle on Friday, which was supported by 40 SMA. Stochastic has dipped into oversold where %K is at the verge of tilting up. These are some evidence to suggest that we may have some sunny days ahead even though the correction may not be over yet. In the event if the correction persist, trendline A and trendline B will serve as supports.

IndoAgri ( Swing Trade Setup )

Friday's closing was a hammer at bullish star position. CCI has dipped into oversold. Trigger, target and stop loss are shown in the chart. Time frame is 3~5 days.

Admittedly, in my last post on IndoAgri. I have neglected the formation of an Ascending Triangle leading to a strong breakout. The current pull back could be the effect of a throw back after the breakout. If this is the case, more upside is expected on a longer term time frame.

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Thursday, October 28, 2010

Yangzijiang - Swing Trade Setup

A Swing Trade Setup is found !

Trigger : $ 1.91
Target : $ 2.01
Time : 2 ~ 3 days
Stop loss : $ 1.84

If prices continue to dip tomorrow ( Friday ), trigger will be moved to next Monday and trigger level will be adjusted to one bid above Friday's day high. If, prices dip beyond 40 SMA, setup will be void.


Tuesday, October 26, 2010

Waiting For Catalyst.....

STI is currently going through a "pause" from the steep uptrend.

An ascending triangle seems to be in the making. Watch for a strong breakout ( if any ) from $2.20 with high volume... If the breakout occurs, the potential target at $3.40 is likely to take several months to achieve.

This counter is under-going a pull back from the steep uptrend. A good area to buy is when prices bounce back from the shaded area in the chart ( $5.95 ~ $6.05 )

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Thursday, October 14, 2010

Straits Times Index - Bearish Divergence

Following the observation of a shooting star candlestick on the weekly chart, a bearish divergence on the daily chart is observed between RSI and the underlying price trend. Combining both warnings, a sign of bumpy ride ahead.


Sunday, October 10, 2010

Straits Times Index - Shooting Star

The Straits Times Index has risen toward the upper boarder of the broadening formation, about 100 points away from our target at 3,280 ( ref : Sept 14 post ). From the daily chart ( below ), all seem well as the index has rallied in a relatively steep fashion with occasional pull back, which is healthy.

However, a quick glance at the weekly chart reveals a Shooting Star candle (weekly RSI is in overbought ) signify potential weakness and selling pressure ahead ( upcoming weeks ). The Fibonacci levels mark the respective defense should the weaknesses turn into reality.

For the much longer term outlook ( 12 ~ 18 months ), we maintain our previous bearish view. Dow continues to trace the right shoulder of the Head and Shoulder pattern on the monthly chart. The tracing of the right shoulder is going to take a long time, probably 1 ~ 2 years to complete, because the left shoulder is a pretty complex one and has taken many years to complete. The occurrence of the pattern is on the monthly chart so it is expected to take a long time instead of several weeks or months.

Finally, an excerpt from today's Zaobao :

(香港讯)明报报道,在美国狂印银纸的量化宽松货币政策下,热钱持续流入香港,前金管局总裁、现中国金融学会执行副会长任志刚公开警告,现时国际金 融市场是百年一遇的混乱情,风险近似1997年和2008年的两次金融风暴。他呼吁市民避免入市炒卖,要问自己能否承受股票随时下跌三四成、息口上升5 厘的压力。


  任志刚表示现时金融市场和实体经济已经脱节,就如97年亚洲金融风暴及08和09年金融海啸般,若脱节到某个阶段,当有什么事情刺激到金融市场内的人们,「便一齐走,bye bye罗,又一次泡沫爆破」。

  他特别提醒市民不要炒卖,「我觉得现在市场情是等待有什么东西刺激它再上升或者刺激它大幅下调。作为一个小投资者或小市民,很难捕捉 到那个转势,所以小心些为妙」。他说,虽然现时储钱入银行没有利息可收,股价又似乎每天都上升一些,很吸引人。但大家应想想如果资产下调很厉害时,我会蚀 30、40%,没息收总比蚀30、40%好」

Original article link : Here