Weekly Technical Update - The STI
The STI rose 42.01 points or 1.59% to 2,688.36 on the first trading day of 2012. This is in accordance with our view on December 29 where we stated the market is likely to stage a mini rally until January 5~6.
The rally today occurred within the downtrend channel. The bulls need a sustained violation of the downtrend resistance line for further rally to the next resistance at 2,795. Failure to surpass the downtrend resistance line calls for a pull back to 2,520.
Depending on how the market pan out. Breakout from the downtrend resistance is a sign of strength, candidate to long is NOL. Reversal from the downtrend resistance is a sign of weakness, candidate to short is SembCorp.
NOL - Long only if market shows sign of strength:
SembCorp - Short only if market shows sign of weakness:
Labels: Market Direction, Stock Pick
posted by Market Wizards @ January 03, 2012
Comments: 0
