Market Diary:
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Tuesday, November 30, 2010

Straits Times Index - Shooting Star in Monthly Chart

The Straits Times Index closed the month with a shooting star candlestick in the monthly chart. Shooting star in a rising trend signals an impending bearish reversal. However, this is not infallible and thus there is no rush to liquidate any old long. For traders who intend to buy on dip or investors to open any new long, be sure you know what you are doing amidst such bearish signal in the monthly chart ( as well as those observed in the weekly chart per last post ).

F&N :

F&N broke a significant uptrend line in the daily chart. In the monthly chart, a candlestick with long tail was observed. Prices may dip to $5.35, which is a support level confluence with the target for trendline violation.

STI Components Stocks

A quick glance** at the 30 components stocks of STI shown 14 of them closed with a shooting star in the monthly chart and 4 of them currently in Parabolic SAR sell phase. The most bullish ones are OCBC and Semp Corp.
** I really meant quick, just scan for shooting star and Parabolic SAR without looking at trendline, support/resistance...etc.

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Wednesday, November 24, 2010

Straits Times Index Update

The sharp plunge by 64 points in the local bourse yesterday has a profound impact on the technical landscape!

The Straits Times Index broke trendline A yesterday but found support at around 3,120 ( thin blue support line ). When a trendline is broken, prices will usually move a distance beyond the trendline equal to the vertical distance that prices achieved on the other side of the line prior to the trend reversal. This is why I stated the price objective will be trendline B and not 3,120 ( which I believe is a temporary support ).

Daily Chart:

There are more evidence to support the notion that prices will dip further after some technical rebounds ( probably to touch trendline A ). The weekly chart has exhibited many bearish signs:
1. Bearish divergence between RSI and the underlying price action;
2. A shooting star candlestick surfaced three weeks ago;
3. Parabolic SAR sell phase has been triggered

Weekly Chart:

In the monthly chart, a shooting star is in the making ( there is serious implication on this ) !

Monthly Chart:


Monday, November 22, 2010

Kepland Swing Trade Setup


The Straits Times Index

The Stratis Times Index tested uptrend line "A" ( confluence by 40 SMA ) today and closed above it. RSI has reached the support level of the previous trough. The index may bounce up from here, and if it does, chances is the correction may end and the index will propel further ( see Elliott Wave chart we are at wave 4 so there should be one more leg up ). If, however, the index break through uptrend line A and the 40 SMA. We will be looking at the resistance turned support line "B" as next target.


Thursday, November 18, 2010

IndoAgri Update

IndoAgri was supported by the resistance turned support at $2.58 and closed with a Meeting Lines candle today. There is a swing trade setup triggers at $ 2.68 with a target at $ 2.88 ( stop loss at $ 2.57 ).

This setup is, however, not as perfect as the previous one because Stochastic is not yet oversold and Parabolic SAR has just turned into sell phase.

Another counter worth watching is NOL !


Monday, November 15, 2010

Society of Technical Analysts Examination Result

Finally! The result of the "Society of Technical Analysts, UK" examination has released. I have passed with a DISTINCTION grade and have formally been admitted as the full member of the Society of Technical Analysts (STA, UK).

With this, I have attained the following qualifications in the financial market:
1. Diploma in Technical Analysis ( Distinction ) awarded by STA UK
2. Full member of the Society of Technical Analysts, UK (MSTA)
3. Certified Financial Technician of IFTA (CFTe)
4. Module 1a of CMFAS passed
5. Module 6 of CMFAS passed