Dow Jones has been bullish since the start of the year without and significant retracement. Perhaps it is time for profit taking soon. I would think that there is a strong resistance at level 14,450 +/- 50 points. The index has surpass its channel. If it meets with resistance at level 14,450 +/- 50 points and resisted, it may come back into the channel and perform a good retracement. Let’s watch out for it !
Hang Seng Index is reversing now. It is a low risk entry to enter HK stocks to ride on the reversal.
STI is still consolidating. Edging up with lesser strength. My earlier comments on STI is still unchanged. Due to high spirit in DJ, STI was lifted up on Wed and Thurs. However, it lacked strength on Friday 8 Mar and resulted in a red candle.
Due to good news of Dow Jones, Asia market was lifted for the past 1 day. It has somehow halted the retracement/ profit taking and invite a buying volume. I would say the price is still consolidating and will be bounded by its resistance at 3,320-3,340 (inside the bigger channel) and its support at 3,160-3,170. Investor has to be patient and see how the index develops before opening a trade. I will only enter either when it is at its support or when price break out from resistance (3,320 – 3,340 or upper channel line) with strong momentum. At the moment, some stock counters rebounded while some still displaying reversal patterns.
At the moment, it seems to me that the market is moving sideway with no clear signal.
Technically, this counter is showing reversal signal with head and shoulder pattern. Price break below neckline.
STI continues to consolidate with a long bearish candle on 4 Mar 13. It is clearly its previous support turn resistance line.
Evening Star showed up in the weekly chart of 1 Mar 13 as predicted on 26 Feb 12. STI daily chart showing sideway consolidation. My comments of 22 Feb 13 is still relevant. It seems that the index is trying hard not to sink to its support of 3,160 – 3,170. Trader have to wait patiently for buying opportunities.