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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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