Market Diary:
World Indices:

Tuesday, June 28, 2011

IndoAgri - Is the worst over?

The market is still bearish and so does IndoAgri. However, a bullish divergence between the underlying prices and RSI signals a possible bottom for this counter.

Resistance : $1.75 and $1.95
Stop loss : $ 1.50


Monday, June 6, 2011

Straits Times Index

Comparing to S&P500 and DJIA, the STI is more resilient. Instead of a correction, it has chosen to consolidate sideways since early May. The sideways movement resemble a symmetrical triangle. By default, a symmetrical triangle has the tendency of resuming the prevailing trend after the sideways action. A breakout from the upper boarder confirms the s-triangle while a breakout from the lower boarder invalidate the formation.

The dotted lines in the chart denotes the respective support and resistance.

It is worth noting that currently the prices are trading below 100MA and 200MA, which has bearish implication.

In the event if prices break below 3,060, it will turn bearish according to Point and Figure chart. When that occur, the index is looking set to retest 2,920.


Dow Jones Industrial Average

DJIA saw continued weakness throughout May extending to early June. Latest prices violated 100MA, touched supported 1 before it closes at Fibo 23.6%. If support 1 holds, the correction may end. Failing which, prices will head down to support 2 ( 11,500 ).



S&P500 has been in correction mode since early May. The correction was foreshadowed by a bearish divergence between the underlying prices and RSI. Latest prices not only violated the uptrend line but also the 100MA. Key support at 1250, a support level from March low confluence by 200MA.