This counter demostrated a very good uptrend for the last 6 months, since June 12. From the low of $1.44 to $1.915 (31 Dec 12), it has already made a return of 32%.
STI closed at 3,163 for the year of 2012 after experiencing some profit taking today. The index made a new high of 3,195 yesterday (30 Dec 12) but was unable to hold and retraced back to my earlier resistance level of 3,160-3,168. I would expect the index to continue with consolidation for the coming week before making its new direction. Of course, the market will be awaiting for news pertaining to the fiscal cliff.
The Dow had a -158 on 28 Dec 12, Friday. It closed at 12,938 below the 13,000 pts which it has held above consistently for the past 1 month. DJ is still bullish at the moment while making retracement. Currently near to fibo 50% of the previous swing which is at 12,916. The index will likely to reverse at about this level or at the next lower support at 12,811.
As mentioned earlier on (refer to my chart on 12 Dec 12), I would expect STI to have some reaction at my resistance zone. Please see the chart and look at how beautifully the bulls and bears struggle in the region of 3,160-3,168. Of course at some days, STI even went to 3,175. As at 12.30 pm, it hovers around the region of 3,163. As a trader, I will not enter here. I will either tighten my stops or take partial profits. I think price will still be holding until all the merry making is over. LOL !
Some readers asked me why my chart is so simple without indicators? All I can say is that almost all indicators are lagging and they are a derived from price. There are specific uses for indicators, but not in this aspect.
Kepland exhibited a marvelous rebound, upon hitting support of 3.27. It is now at its resistance of 3.85. Cautious traders can take some profit or tighten their stop while waiting to see how the counter is going to react. The candle of 12 Dec 12 looks strong and steady. It is likely that price will break that resistance before have a pull back.
On the extreme, Olam seems to stablised at its current price after so much talks in the media. Nontheless, there is a stronger support at 1.35.
STI broke its 12-months high of 3,100 and attained a high of 3,145 today. Looking at the chart, the Index is reaching the upper channel resistance as well as projected resistant of 3,160. I would expect market to react around these resistances. Expect profit taking in this region then follow by a small pause before market searches for new direction again.
DJ was +39 and local market resumes its vibrance with confidence. Like I said, window dressing in Dec. Funds are buying and STI reaches 3,107 at 10.50 am. It is around the market resistance of 3,110 for the last 12 months. Smart traders were already in the market when it turns around from 2,950. Getting in now would mean high risk but then, there is one whole month to play around. It seems that the market is having a short-term speculative play but I don’t eliminate the possibility of it breaking the resistance of 3,110. We shall see how the candles behave for the next couple of days to see if it really break 3,110.