Market Comments (STI) for the Week of 3 Aug 15

STI has broken the strong support with a big gap down and high volume, closing at 3,202 on Friday 31 July 15. The sell down was really fast and furious although on that day, Hang Seng and Shen Zhen composite Index were fairly stable. It was revealed that the hugh sell down was led by Noble, which was given a warning by SGX. Looking at the volume and magnitude of the sell down, I would expect the down trend to continue for quite a while more and in view of the coming National Day week, it will be worsen when approaching the public holidays.

The next 2 support zones are in the regions of 3,160 – 3,130 and 3,060 – 3,030. We shall see how STI reacts near these regions before making any trading decisions. If you have taken profit / cut losses, do stay in the side line.

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Market Comments (STI) – 30 July 15

STI has been suffering from macro economics factors. It has been in RED for the past straight 7 trading days. There is a strong support is at 3,230. I would expect there will be some reaction around that region and we shall see if the Index gets supported or the free fall continues. At the moment, the Index is having a down trend.

Market Comments (STI) for 7 Feb 2014

SGX

STI Daily 6 Feb 14

STI has broken its 1st support on 4 Feb 14 with a low of 2,953. As the index did not continue to head towards its 2nd support of 2,900 – 2,920 for the time being, we can assume that the Index is taking a rest. Currently, we can see that it is trying its best to go above 2,990 (support turn resistance). Once 2,990 is broken and the Index stays above it for a few trading days, we can say that the Index is supported. It will be good if this coincides with MACD reaching its bottom or crossing its signal line. Once this is established and if possible, wait for a retracement back near to the support of 2,990, Traders may go in for bottom fishing with a tight stop loss.

However, if 2,990 is not broken or the Index does not hold above for a reasonable period of trading days, then we can expect market consolidation to continue with no direction. The index will hover between 2,920 to 2,990.

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Market Comments (DJI / HSI / STI) For Week of 29 Apr 2013

DJI 29 Apr 13

HSI 29 Apr 13

STI 29 Apr 13

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.