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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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