For now, just a quick technical analysis of the Singapore STI index. See chart below.
Hope it breaks the short-term downtrend resistance to move back to uptrend mode. Cheers!
Monday 24 February 2014
STI index - This week's review
Pardon me for the lack of post recently. I am really loaded with work in office 2 week ago and is now away to serve the nation for my annual ICT. I took some time off during this book-out weekend and did a quick analysis of the STI stock index. Promise there will be more technical analysis of various stocks once I am done with the reservist.
For now, just a quick technical analysis of the Singapore STI index. See chart below.
Hope it breaks the short-term downtrend resistance to move back to uptrend mode. Cheers!
For now, just a quick technical analysis of the Singapore STI index. See chart below.
Hope it breaks the short-term downtrend resistance to move back to uptrend mode. Cheers!
Thursday 13 February 2014
STI index - Market rebound, but is the selling over?
After last week selling which triggered fear of massive sell-off in the global market, investor seems to have taken a breath of relieve. This comes from the result of global data that released news of economic recovery particularly data from China. Together in hand with US fed chairman announcing the continuity of monetary easing policy rate, investor seem to have taken the news with certain degree of positiveness. With those positive announcement, the Singapore Stock Index rebounded from its uptrend support line into safety range of above 3,030.
From the charts, we can see that the charts touches and then bounds off the support trend line at ~2,950, moving back up strongly towards 3,035 level. This shows that the long-term uptrend, (shown by the parallel brown lines) are still intact. However, whether this rebound is really a show of economy recovery or just a technical rebound before the worst comes is still yet to be seen. Aside from the long-term uptrend channel, we can see that the price is still moving within the short-term downtrend channel, (shown by the parallel blue lines) this shows that selling might not be truly over yet. Should the price continues to move within the short-term trend, we would see first resistance at ~3120 and a major resistance at 3180. Break above these range should provide assurance of the uptrend continuation, if not, then it will be better to prepare for what might be about to happen >.< (no eyes see)
Key Support and Resistance are draw in Green and Red circle respectively.
Cheers
From the charts, we can see that the charts touches and then bounds off the support trend line at ~2,950, moving back up strongly towards 3,035 level. This shows that the long-term uptrend, (shown by the parallel brown lines) are still intact. However, whether this rebound is really a show of economy recovery or just a technical rebound before the worst comes is still yet to be seen. Aside from the long-term uptrend channel, we can see that the price is still moving within the short-term downtrend channel, (shown by the parallel blue lines) this shows that selling might not be truly over yet. Should the price continues to move within the short-term trend, we would see first resistance at ~3120 and a major resistance at 3180. Break above these range should provide assurance of the uptrend continuation, if not, then it will be better to prepare for what might be about to happen >.< (no eyes see)
Key Support and Resistance are draw in Green and Red circle respectively.
Cheers
Thursday 6 February 2014
STI index daily chart - testing trend line support
I posted an analysis of Singapore Straits Time Index index two days ago. The analysis was based on weekly charts and shows that index was treading carefully on the support line, with a descending triangle formation, that caution to be taken from any trades. For today's post, will be another analysis of the STI index, however it will be based on daily chart, and might provide a different angle for analysis.
From the chart, it can be seen that price action is still moving within the uptrend channel formed from more than 2 years ago. The high in first half of 2013 was a bump and run breakaway from the uptrend channel but was subsequently correct in May'13. Price then continue to move within the channel band in a narrow down-channel manner (enclosed by the 2 blue lines) till the recent drop that see price hitting the trend line support line (look at smaller red circle).
With the price treading closing on the trend line, a break off with force below this trend line and the horizontal support line (bold brown line) towards 2900 should indicate end of current uptrend. Should this happens, TP is expected to be around the bigger red circle (around 2700). It is where the downtrend channel (blue line) and red horizontal line support will meet.
Positive things from the charts are the technical indicators; MACD and Stochastic. (green circle) Both shows that are current price is at its low and a rebound is about to take place. Stochastic line moving across its signal line indicates the price is slowly moving up from its low. MACD histogram is decreasing, shows that the selling strength is dwindling.
From the chart, it can be seen that price action is still moving within the uptrend channel formed from more than 2 years ago. The high in first half of 2013 was a bump and run breakaway from the uptrend channel but was subsequently correct in May'13. Price then continue to move within the channel band in a narrow down-channel manner (enclosed by the 2 blue lines) till the recent drop that see price hitting the trend line support line (look at smaller red circle).
With the price treading closing on the trend line, a break off with force below this trend line and the horizontal support line (bold brown line) towards 2900 should indicate end of current uptrend. Should this happens, TP is expected to be around the bigger red circle (around 2700). It is where the downtrend channel (blue line) and red horizontal line support will meet.
Positive things from the charts are the technical indicators; MACD and Stochastic. (green circle) Both shows that are current price is at its low and a rebound is about to take place. Stochastic line moving across its signal line indicates the price is slowly moving up from its low. MACD histogram is decreasing, shows that the selling strength is dwindling.
Wednesday 5 February 2014
STI index - not looking good
Global equity market shares followed a large sell off for the past few days. Things are looking gloomy at the moment with the Singapore index losing over 150 points since Monday almost 500 points or 15% off the peak about 7 months ago. Bad news just kept coming one after another, since the selling off of emerging market coupled with tapering of the US fed, and bad growth data from China and US economy. So will the selling continue or will it bounce off into recovery?
From the weekly index chart above, we can see that the price has gone down to test the support level of previous low at around 3025(bold brown horizontal line), giving the possibility of forming a lower low. The price has also dipped slightly below the uptrend line, as shown by the thing brown upward line, re-testing the strength of uptrend line. Any break down with force below both line should indicate the end of current uptrend.
Another thing to note is the formation of lower highs over the past few month, which the chart forms a descending triangle formation with the down sloping blue line. As descending triangle is usually a bearish pattern, things are looking even more gloomy. As for MACD and Stochastic indicators, both points to increasing strength in downside movement. MACD is moving away from its signal line and moving towards a lower low compared to the low in Sep'13. Stochastic is also moving back down after just scrapping the 60-mark.
Positive things from the chart are the possible formation of a mini double bottom (circled in red on the price chart) if the price manages to hold above the 3000 level for this week and/or the formation of the descending triangle is more of a continuation rather than a bearish pattern. (triangle are continuation patterns) BUT most indications are pointing otherwise. Just remember to trade/invest within your means and run before things turn really ugly, watch out for the break!
From the weekly index chart above, we can see that the price has gone down to test the support level of previous low at around 3025(bold brown horizontal line), giving the possibility of forming a lower low. The price has also dipped slightly below the uptrend line, as shown by the thing brown upward line, re-testing the strength of uptrend line. Any break down with force below both line should indicate the end of current uptrend.
Another thing to note is the formation of lower highs over the past few month, which the chart forms a descending triangle formation with the down sloping blue line. As descending triangle is usually a bearish pattern, things are looking even more gloomy. As for MACD and Stochastic indicators, both points to increasing strength in downside movement. MACD is moving away from its signal line and moving towards a lower low compared to the low in Sep'13. Stochastic is also moving back down after just scrapping the 60-mark.
Positive things from the chart are the possible formation of a mini double bottom (circled in red on the price chart) if the price manages to hold above the 3000 level for this week and/or the formation of the descending triangle is more of a continuation rather than a bearish pattern. (triangle are continuation patterns) BUT most indications are pointing otherwise. Just remember to trade/invest within your means and run before things turn really ugly, watch out for the break!
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