Market Diary:
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Tuesday, March 29, 2011

KepCorp - Possible Symmetrical Triangle

A possible symmetrically triangle in the making? Look up for possible upside breakout with a price target of S$ 13.50.


Wednesday, March 23, 2011

STI Approaching Resistance

Despite the good showing the past three days, STI cannot be considered out of the wood until it is able to clear the three trendlines ( A, B and C ) as shown in the chart below. Trendline A is the most important, it is the key resistance at 3,040. A reversal from this level signifies the downtrend is still intact. A break above this level denotes sign of strength. Once trendline A is cleared, STI needs to also clear trendline B which is a downtrend line. When both trendlines A and B are overcome, the uptrend has resumed. Let's see how the market is resolving itself -- Posted from Penang.


IndoAgri is attempting to break the downtrend line. If successful, it will mark a turn around of sentiment to bullish !

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Sunday, March 20, 2011

Straits Times Index / SembMar

On the daily chart, there is early sign of a bullish divergence between the price action and RSI oscillator suggesting the index may have found near term support at 2,919. Immediate resistance is 3,040.

In the unlikely event if 2,910 is taken, the index will sought for 2,770 and 2,650 as the next two major supports. However, this seems to be quite unlikely in the upcoming week. What come after next week will need to be re-evaluated later.


The latest closing on Friday ($5.30) is touching the uptrend line. If the uptrend line is intact, prices will rebound to $5.58. If the uptrend line is breached, the next two supports are $5.00 and $4.75.

On the monthly chart, a long tail inverted hammer is in the making ( the month has not ended yet so it is subjected to change ). If the long tail inverted hammer is intact by month end, the mid ~ long term move of the counter will be bearish.

To sum up, we may see SembMar rebounding from $5.30 to head toward $5.58 but thereafter the next 3~6 months move could be bearish ( heading toward $4.27 ~ $5.00 ).

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Sunday, March 13, 2011

STI Technical Analysis

Last week, we mentioned the key support and resistance were 3,040 and 3,120. At the end of the week, both levels were tested. On March 9, STI rose to 3,113 which was closed enough to our resistance level at 3,120. On March 11, STI dipped to a low of 3,024 but closed at 3,043. The index was supported by the crucial support level at 3,040.

Should 3,040 give way in the upcoming week, the index will likely to head down to 2,910. This level coincides with a descending triangle price objective. This descending triangle is, however, not a textbook perfect version because the time to breakout was less than 50% so I am really apprehensive on whether to consider it a valid chart pattern :

Regardless, 3040 will still be the most crucial support level to watch. Once the index dips below 3,020, a new Point and Figure sell signal will be generated bringing the price target to 2,910 anyway.

Below is the view of Colins Twiggs from Incrediblecharts :


Sunday, March 6, 2011

STI Key Support and Resistance

On the candlestick chart, the last two candles ( Thursday and Friday ) were inverted hammer with long tail - a sign of rejection. It looks like STI will be under some selling pressure to retest 3,040 earlier next week.

On the Point and Figure chart, there is an upside target of 3,120, which is coincide with the candlestick chart key resistance.

To sum up, key resistance 3,120. Key support 3,040.


Tuesday, March 1, 2011

Market View

STI rose 57 points today. The endorsement given by the bull is resounding. The index has now regained control of 200 MA and broke above 3,040 decisively. It is time to buy on dip during profit taking and look toward 3,120 as the next major resistance.