Market Wizards: February 2018

Market Analysis

Straits Times Index (STI):

The STI has retraced 194 points since January 24 at the back of high volume during the sharp plunge. It has found support at Fibonacci 23.6% confluence by the uptrend line and 200MA. It is likely the correction is not over yet. Next few major supports are 3200 (Fibo 38.2%), 3060 (Fibo 50%) and 2950 (Fibo 61.8%).

Despite the correction this far, the uptrend is still intact but not if the uptrend line and/or the 200MA is broken. At its current state, it warrants "Long Exit" but not "Short Entry" yet.

Dow Jone Industrial Average (DJIA):

The DJIA is currently supported at Fibonacci 23.6%. The uptrend is still intact as of now but not if the 200MA and/or the uptrend line is broken. Next few supports are 22400 (Fibo38.2%), 21000 (Fibo 50%) and 19600 (Fibo 61.8%). I don't quite believe the correction is over yet, it may last for several weeks if not months.

Labels: Market Action, Market Direction

Capitaland Updated Chart ( Ref original post January 16 )

On January 16, I suspected Capitaland was trading at the upper boundary of a trading band and may u-turn after touching it. Below are the original chart and the updated chart:

January 16 Chart:

February 10 Chart:

Labels: Market Action, Market Direction, Stock Pick

Yangzijiang Updated Chart ( ref original post January 10 )

On January 10, I casted doubt on the potency of the upswing of Yangzijiang. One month has gone passed, the market has proven me correct that the upswing at that time was just a 'return move' aimed at touching the broken uptrend line and thereafter Yangzijiang has to take the toll of breaking the uptrend line.

January 10 Chart: