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Wednesday, February 19, 2014

STI Technical Analysis Feb 2014

The Straits Times Index has finally arrived at the trading range of 3,080 ~ 3,100, a level which I have cautioned in my previous post as a possible point of reversal.  The closing today at 3,088 is a doji candlestick signalling indecision of the market.   Prices have now returned to touch the trendline it has broken on January 24.  The trendline is now served as a resistance.  We shall see if the market will indeed heeds the above technical observation.


Saturday, February 15, 2014

Straits Times Index Technical Analysis Feb 2014

The Straits Times Index

There is no change in my technical view on the market. I continue to believe the recent leg up is technical rebound in nature. The critical level to watch is the price action at 3,080 ~ 3,100.  Of course, technical analysis is not infallible so I stand corrected if the market prove me wrong. However,  my technical view was derived from the chart below which I believe make sense to anyone with technical analysis knowledge.


Similarly, there is no change in my technical view on SembMar.  It appears SembMar has already completed a textbook fashion's 'return move'.  I am very curious too if the forthcoming move will validate the teaching of technical analysis.


Olam has arrived at an important chart point.  The latest prices are touching a long term downtrend line confluence by short term resistance and 200MA.  RSI is showing a bullish divergence. A strong breakout ( if occur ) from the downtrend line and short term resistance supported by heavy volume may signal a bullish reversal. 


Kepland is confronted by a short term downtrend line. It will either be a "Swing Short" setup if prices succumb to the downtrend line, or a bullish reversal ( since RSI exhibits a bullish divergence ) if a breakout occurs accompanied by heavy volume.


Wilmar is consolidating within a probable descending triangle ( there is only two touches so it is not a confirmed price pattern ).  $3 is a critical price level.  Once this level is broken, we may probably see $2.2 as the target.


This is the most bullish counter in all of the stocks review here. It is the only one trading decisively above the 200MA and possibly an ascending triangle. A strong breakout at $3.5 will suggest a minimum target of $4.1.

For short term swing trade ( speculative play ), one can look at UtdEnvirontech, Vard Holidng, Oxley Holding…etc.

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Tuesday, February 11, 2014

UtdEnvirotech Technical Analysis Feb 2014

UtdEnvirotech ( U19 )  is a strongly uptrend stock with presence of fund. It is currently consolidating sideway but looking set to resume the uptrend by breaking new high.


Sunday, February 9, 2014

SembMar Technical Analysis Feb 2014

SembMar ( S51 ) breakdown from a multi-year support on January 24. This support is part of a large descending triangle formation**. The rebound from Feb 5 ( $3.9 ) to Feb 7 ( $4.1) is likely to be technical in nature aimed at correcting the short term oversold. The rebound, known as the 'return move', may continue for a couple more days until prices touch the support turned resistance ( $4.15 ~ $ 4.20, may overrun slightly ).  After that, we may see prices reverse with a mid to longer term target of $3.00.

**Descending triangles are usually continuation pattern but it may also appear in market top as a major reversal pattern

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Wednesday, February 5, 2014

STI Technical Analysis Feb 2014

The STI has violated an important multi-year uptrend line. In the near term, there is a likelihood where the index may stage a technical rebound to 3,080 ~ 3,100 since RSI is oversold. This is known as the 'return move' in technical analysis usually happen after a trendline violation. The target is derived from the support turned resistance of the recently broken uptrend line.  In the mid to longer term, the STI may head toward the lower boundary of the downtrend channel to 2,880 ( which is Fibo 61.8% from a key peak and trough ).  If this level is taken, we may look toward 2,700 as the target.