A Trader's Journal
DJI, HSI and STI
If you refer to my last posting, the support of 3,055 was well respected. The STI was lowest at 3.065 on 21 June 13.
After the whipsaw last week, I would advise not to take on any swing position of STI component stock unless the index moves above 3,205 and stay there. This must be couple with crossing of 5 and 13 EMA. The index is still rather weak now. The new support is now at 3,140.
STI don’t look good. Should not long until signal of reversal shows up.
Last Friday 14 Jun 13, the STI went back to above its support of 3140 to 3150. The previous day was a false broke down.
Today some counters are showing signs of support and possibility of technical rebound. I would say that at this juncture, the index and some blue chips are deeply oversold and very near to support and showing strength to rebound.
I entered into the market today with a low risk entry and tight stop.
18 Jun – The market rebounded. My positions are positive.
20 Jun – Fed Chairman Ben Bernanke suggested that strengthening economic data could enable the Fed to start gradually reducing its stimulative bond-buying plan resulting in massive sell off in the markets. I am still holding on the my counters, following my trading plan. Will cut it when it breaks my support.
21 Jun – DJ -350 pts. Support was breached. STI gap down. I closed all my position. It really a pity that the market rebound was totally crushed by Bernanke’s talk.
I think that the market will be sluggish for the next 3 months at least.
If you look at the 1 year channel, the index doesn’t look good as it has broke down the lower channel resistance line. A longer downtrend may loom ahead.
STI has broken its strong support of 3,140 – 3,150. As at 2.30pm, the index was at 3,107. The next support is the psychological support at 3,000.
DJI – The index has made new high again. Its previous resistance of 15,100 to 15,200 only held for 5 days and was broken. The momentum is strong. These resistence levels have turned into its immediate support now. The next strong resistance level is at 15,600.
HSI – The Hang Seng Index has made a nice recovery but was slightly retracing for the past 1 week. A nice support will be at around 22,520 and the next one at 22,180. The index will likely to take a break now and consolidate before continuing its direction.
STI – Ever since the Straits Times Index broke out of its trading range (that lasted for a few months), it has been inching its way up. It closed at 3,449 on 17 May 13 and reached a high of 3,458 on 20 May 13 (Monday). Concidentally, STI’s next resistance is a round number of 3,500 and the immdiately support is at 3,400. Besides technical, these are also psychological support. But prior to reaching the next level, expect some profit taking and consolidation. There are 5 little red candles for the past week although each of them edged up slightly by a few points a day.
DJI – The index once again has broken new high. The resistance of 15,100 – 15,200 was held for a few days. Although DJI has reached a high of 15,301 on 15.5.13 (Wed), it closed at 15,275 yesterday. It is stil difficult to confirm that the resitance has been broken since it is only 75 pts above 15,200 for only 1 day. To be sure, I would observe for another day or so to see if it is not a false breakout.
STI – The Straits Times Index will likely to be range bounded between 3,400 and 3,500 for the rest of the week till early next week. We need to give time for the index to gain momentum to go up again or to give time for people to realise that it is time to take profit. Nonethless, the support level will be the psychological level of 3,400.
Was unable to post earlier due to some personal commitment.
Nonetheless, my last market comments is still relevant for this week. I shall repeat and keep it short.
DJI – making its way to next resistance level of 15,100 – 15,200. And it did makes its way to 15, 077 as at now.
HSI – riding on DJ making record high, hang seng will continue its reversal.
STI – will stay above 3,400 after a small pull back.
After Blogging for sometime, I am wondering if my comments benefited you. It will be good if you can leave your comments or email me so that I can roughly guage if it is still worthwhile to continue writting weekly.
Dow Jones – The index has tried to climb from its older support of 14,450 – 14,500. However, it has met with its previous support turn resistance at 14,680. Currently, the index has been ‘trapped’ between these zones. Until the index break free of 14,680, the next strong resistance is at 15,100 to 15,200.
HSI – The Hang Seng Index has cleared its resistance of 22,521 last Friday. It has also broken the down sloping resistance trend line. Last Friday candlestick is somewhat doji. We need to observe for 1-2 more days to ensure that it is not a false breakout. If the index can remain above these levels, then we can expect the index to make its way to recovery. Trader may enter once you can establish that it is not a false breakout, or a safer way is wait for a higher low to form.
STI – The Straits Times Index finally broke out of its trading range with last Thurs/ Fri index closing above its resistance line. It has also broken its previous high of 3,331 clearly. As accurately pointed out last week, the STI has gathered enough momentum and broke out. Let’s observe the STI’s performance for a couple of days more before commenting further.
Dow Jones – The index has retraced to its older support of 14,450 – 14,500 last Friday (19 Apr 13). Day trader who stoodby this level and enter long would have benefit by now. DJI strongly rebounded to 14,719 on Tues 23/4. Do expect wider swings and higher volatility as the index climibs higher. The next strong resistance is at 15,100 to 15,200.
HSI – The Hang Seng Index made a strong climb last Friday (19 Apr) to 22,013. HSI has been making low since the start of the last week till Thurs, where it was nearly its support of 21,280. The index is in a short to medium term downtrend. The down momentum is likely to continue and thenext support zone is around 21,080 to 21,280. For a reverasl to occuer, the index must clear resistance 22,521.
STI – The Straits Times Index is still trapped in the rectangle (sideway). We shall expect STI t0 continue its sideway movement until it breaks its upper channel resistance and previous high of 3,331 clearly. However, from my observation, STI has been sticking on the upper reistance line. If this continues, it maybe soon that the STI gathers enough momentum to move up, breaking away from its restiance.
Jayson's Financial Trading 