Chip Eng Seng 22 Feb 13

Chip Eng Seng Feb13 Daily

The daily chart of Chip Eng Seng shows that the counter is currently being supported. However, it is still away from a stronger support of $0.77. Indicators show that price is likely to continue its retracement. With STI also reaching its resistance, buying this counter now is definately not a low risk entry.

STI 22 Feb 13 (Daily / Weekly)

STI_22 Feb13 Weekly

STI_22 Feb13 Daily

The week ended with STI further consolidate and close at 3,288 on 22 Feb 12. Though still bullish, the index is losing momemtum as it approaches the resistance at channel ceiling and the weekly resstance of 3,319. Daily indicators also showing momentum slowing down with CCI turning negative and appearance of MACD bearish divergence. Weekly chart DOji appeared, signally the possibility of a reversal. Investors should watch out for profit-taking soon.

STI 15 Feb 13 (weekly chart)

STI_15Feb13

Bullish STI has climbed up far but there was not much movement on 14 and 15 Feb 13. Taking a look at the weekly chart,  it is reaching the upper channel line (blue) and there are some resistances (red line) present. Immediately resistance is 3,317 and next will be 3,356.These are strong resistances and I would expect STI to have some reaction/ profit-taking at these levels. If STI is able to break free of this channel, then we are looking at 3,400.

3,530 level, derived from the weekly chart and is definately the strongest resistance in the near term. I don’t foresee it reaching so soon without and retracement. Watch out for reversal signals at these levels.

Immediately support is around 3,160. Always remember, enter at support and exit at resistance.

24/7 Wall St.

TradersMarket rumors and speculation has been about that other exchanges would either go private or would merger together after this mega-exchange merger between NYSE Euronext, Inc. (NYSE: NYX) and IntercontinentalExchange, Inc. (NYSE: ICE). The first of the formal rumors in this exchange M&A is now Nasdaq OMX Group Inc. (NASDAQ: NDAQ).

The Wall Street Journal has discussed that private equity player The Carlyle Group LP (NASDAQ: CG) has held discussions with NASDAQ OMX about possibly going private. The talk is that the private equity group approached the electronic trading exchange but it is also said that talks are not ongoing as the two companies did not see eye to eye on price. The tie here is that NASDAQ’s former CFO is now the Carlyle CFO.

We have said that exchange mergers are likely to consider as long investors understand that regulatory risks are…

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24/7 Wall St.

Bull and Bear figuresU.S. equity markets opened slightly higher this morning following the report that nonfarm payrolls had grown by 155,000, better than the expected growth of 150,000 (more coverage here). The December unemployment rate came in a 7.8%, flat with the revised figure for November, but below the expected rate of 7.7%. In Europe, non-manufacturing PMI data was release for the eurozone, and the reading for the entire group came in a 47.8, in line with expectations, but still indicating contraction. Retail sales were down year-over-year in Germany, but not by as much as estimated. In Asia, China’s non-manufacturing PMI fell slightly month-over-month and Australia’s reading fell from 47.1 to 42.3. U.S. equities rose early and remained in positive territory most of the day. The Nasdaq has posted the smallest gain following a report from Deutsche Bank that it does not expect Apple Inc. (NASDAQ: AAPL) to meet quarterly…

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DJI 3 Jan 13

dj_3jan13daily

DJI made a fierce rebound on 31 Dec 12 upon nearing its low of 12,818 on 30 Dec 12, 7 pts away from its support of 12,811. The market respect the support very well on this occasion which coincided with the announcement pertaining to the fiscal cliff. This was followed by gap up on 2 Jan 13.

I quote my comments for DJI on 28 Dec 12 – “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.”

 

STI 31 Dec 12

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.

STI_31Dec12