Weekly Technical Update - The STI
The Straits Times Index:
Last Thursday, STI breached the last significant low by 13 points created a lower low in the downtrend channel. However, the degree of penetration is not large enough to consider a successful violation yet. In fact, the rebound on Friday is creating confusion on whether Thursday's low is a lower low or a double bottom. Meanwhile, the index remains oversold based on Stochastic. It is possible the STI may head for a weak start due to lackluster performance of Dow on Friday but it may edge up gradually later in the week. Volume is likely to be light due to festive season. Upside is cap at 2,730 ( downtrend resistance ). Breakout above 2,730 signals a possible trend change.
Stock To Watch:
SembCorp - The major trend is down but there is upside potential from Friday close at $4.01 to $4.20 before it meets the downtrend resistance.
PS: Due to a family vacation overseas on Dec 23 ~ 28. Weekly Technical Update next week will be interrupted. Stay tune for 2012 Market Outlook when I return.
~~~~~~~~~~~~~~~~~~~~~~~~~Merry Christmas !! ~~~~~~~~~~~~~~~~~~~~~~~
Labels: Market Direction, Stock Pick
posted by Market Wizards @ December 17, 2011
