STI has broken its resistance of 3,120 on 6 & 7 Mar 2014. The resistance (3,120) has been well held for the last 11 trading days starting 19 Feb 2014.
Currently, both the RSI and volume is high, but experience losing of strength. MACD is positive but upside strength weakened. The trend is bullish, but considering all factors, it is not a strong entry as compared to the one on 11 Feb 2014, which I have mentioned in my 7 Feb 2014’s posting.
The Index has been on the up trend for the last 22 trading days. I will observe for 1 to 2 more trading days to ensure no false breakout. Traders may wish to enter/ re-enter the trade upon a pullback. As conservative traders, it will be good to take partial profit still, if you have not done so. The immediate support is at 3,065. The next target will be forecast when it is confirmed not a false breakout.
The Dow Jones has broken its resistance of 14,860 on Wed, turning this level from resistance to support. If the strength continues, we are likely to see the index hiting its next resistance of 15,100 to 15,200. Trader wanting to enter can wait for slight pull back towards 14,860 and enter long. There are probably some consolidation in the coming week before DJI making its way towards the 15,000 mark.
HSI – The Hang Seng Index was being rejected nicely by the resistance level of 22,185. The index is in a short to medium term downtrend. If you plot in the moving average, it is below 100 days moving averages but supported my the 200 days moving averages. Both the CCI and MACD are negative. The down momentum is likely to continue and we are looking at next support zone at around 21,080 to 21,280.
STI – The Straits Times Index has been trapped in the rectangle (sideway) for the last 2 months. CCI is negative again and MACD has crossed its signal line. We shall expect STI t0 continue its sideway movement until it breaks its upper channel resistance and previous high of 3,331 clearly.
Dow Jones has met with bulls and bears fighting with indecision for the past one week. Resistance level of 14,450 – 14,500 still holds and it has demostrated how nicely the candles stick to the levels verifying the resistance zone which was first predicted on 8 Mar 13 in my earlier postings. The CCI is coming down and MACD has crossed finally (lagging). In view of the tough fight between the bulls and bears, we need to wait for candles that shows distinctly whether it breaks out of resistance zone or retrace below it.
Hang Seng was performing badly. As forcasted last week, it has broken down its previous support and is currently at its next support of 22,185. These two supports were pinpointed accurately. I foresee further downside for HSI in the coming week.
STI is still consolidating sideways and has been so for the past few weeks. It is bounded by resistance of 3,320 and support of 3,230. Bearish divergance still maintained and its direction will only be known when it either breaks the resistance of 3,320 or support of 3,230.