Market Comments (HSI / STI) For Week of 1 Apr 2013

HSI 1 Apr 13

STI 1 apr 13

STI was very near to its upper resistance zone of 3,320 on Thurs 28 Mar 13. However, it was a red candle and indicators did not give any conclusion as the index has been moving sideway for the past few weeks. We will need to wait for price action to confirm a breakout of resitance or continuation of consolidation within a tight zone. Although the bearish divergence has been there for weeks, ultimately it is price action the rules.

HSI performs rather badly and seems to continue falling for the coming week with indicators hinting continuation of downtrend momentum. Its support is currently at 22,185. We need candles to close below this level to confirm a breakdown.

Market Comments (DJI / S&P 500) For Week of 1 Apr 13

DJI  1 Apr 13

SnP500  1 Apr 13

DJI seems to edge up above its resistance of 14,450 to 14,500. However, the red candle on 28 Mar 13 did not give us conclusive breakout. Volume did not have any significant increase for the past 1 week. We need to observe for 1-2 candles more. If breakout is confirmed, the next resitance is at 14,680 level. For trader who wish to have a quick in and out, you may enter at the point just as DJI breaks the resistance zone (14,500+) and set its stop loss below its recent low within the resistance zone (somewhere slightly below 14,450). This will provide a low risk entry. However, the risk reward ratio is not high as I next resistance is about 14,680.

SnP is currrently at is resistance level of 1,560 +/- 15 pts. CCI is turning up and MACD gives consistant indication. If this resistance does not hold, the next resistance will be at around 1,605.

Somtimes, it is rather dangerous to hear the news that says “S&P set record high” and investors jumped in. This is because the indexes may just hit its resistance that’s around the corner and retrace. I know there are many traders out there waiting to shot the indexes and they have waiting patiently for the past seveal weeks. As such, we need to thread carefully, especially when both DJI and S&P500 has been trending up for the past 1 quarter. The bear may be just looming around the corner.