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 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.
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.
DJI – The Dow Jones was accurated rejected by resistance level 14,680 last Wed. Its immediately support is at 14,450 – 14,500 zone. Currently, the index is trap within a tight traingle of 14,680 and the upper ceiling of the trend channel. Once the index break this triangle, we will see a clearer direction. At the moment, indicators points towards reversal. Both CCI and MACD are turning down. If the index indeed break down of the triangle, we are looking at next support between the region of 14,120 to 14,230.
HSI – The Hang Seng Index was being rejected nicely by the support-turned-resistance levels of 22,521 and 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. 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 hit its sideway resistance and is turning down. It has completed an evening doji star pattern and will be continue to be trapped in the rectangle (sideway). CCI is turning down again and MACD bearish divergence. STI will remain rather unexciting in the coming week.
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.
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.