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.
SembMar
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
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
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
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.
M1
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.
Labels: Market Direction, Stock Pick
posted by Market Wizards @ February 15, 2014
