Market Diary:
World Indices:

Saturday, January 21, 2012

Weekly Technical Update - The STI

Straits Times Index
When the market resumes trading after the Chinese New Year holidays on Wednesday, we are likely to see the STI retesting the key resistance at 2,910. This is a key level because it is the resistance of the last significant highs, Fibo 50% of a major peak and trough, and the 200MA. It is not a level that can be defeated too easily considering that the index has already rack-up considerable gain without a decent pull back since January 3 where the market is quite overbought. Failure to overcome 2,910 calls for a pull back to 2,790 and 2,730. On the contrary, successful breakout from 2,910 will likely see the index propel to 3,000 ~ 3,200.

-- Stocks Review and Commentary --

UMS Holding Limited
UMS has successfully breakout from the Fibo 50% confluence by 200MA. Next resistance is $0.48 ~ $0.50 which is where Fibo 61.8% is. Once $0.50 is taken, Parabolic SAR buy phase in the monthly chart will be triggered. More upside can be expected.

Note : Granted that RSI is overbought but overbought during a strong uptrend is not a reason to liquidate a long position ( unless a failure swing is developed ).  

Genting has successfully breakout from a downtrend resistance line but resisted by Fibo 23.6%. If the breakout can be sustained, next target will be $1.75 which is Fibo 38.2% confluence by 200 MA.

IndoFood Agri
Watch for breakout at $1.45 and $ 1.50 ( 200 MA ) for more upside.

Olam International
Latest prices met resistance of a downtrend line and 200 MA where RSI is reaching overbought. Failure to overcome this level ( and the next downtrend resistance of a larger time frame ) calls for a pull back to $2.30.

Prices met resistance at Fibo 23.6% while RSI has reached overbought. Some short term retracement is possible. Thereafter, the next target will be $1.21 ( last significant high confluence by 200 MA ).

Capitaland has met the downtrend resistance line. If it is able to breakout from the downtrend line, the next two targets will be $2.75 and $3.1. Failure to overcome the downtrend line will likely see a pull back to form a new low.

Labels: ,