Weekly Technical Update - The STI
The Straits Times Index:
The chart below is the exact same chart I used for last week. The STI retreated after touching the downtrend line and found support at 2,680. The index fell 4 out of 5 days last week. It has lost 79 points the entire week where many stocks especially the property counters have been beaten up badly. At the backdrop of Dow gaining 186 points on Friday, chances is we will see a rebound on Monday / Tuesday. Resistance 2,730. Beyond that, we will have to assess the market again by mid-week. The major trend remains down. Any rally remains technical rebound in nature and could be short-lived. This view will be invalidated if the downtrend line is breached decisively.
CityDev:
This is one of the property counters being beaten up badly and should see a technical rebound since RSI is showing a bullish divergence. Buy trigger is one bid above Friday's high, which is $9.11. The long term trend is down so we are looking at nimble rebound play.
Labels: Market Direction, Stock Pick
posted by Market Wizards @ December 11, 2011
