Roundup – 3rd Nov 2008

G’day folks. Now you  may be wondering why I have been so quiet. Well I don’t have anymore positions, long or short in my trading portfolio, as I took profit (and losses on some of them) and decided to sit on the side-lines for a better opportunity.

The end of day charts really didn’t excite me much. But Wilmar (one of my darlings) did. What one can see is a nice W (double bottom) pattern. I drew my fibonacci projections and woala! I was quite surprised today’s price closed at the fibonacci resistance point actually. I thought it looked like a near 50MA test. Now what would I like to see. For a long play, I would like to see it pierce right through the resistance line which so happens to be 23.6% resistance as well. Pierce it, pull back to consolidate before a blast off. What do you have if it pierces through and then pulls back to consolidate? You get a higher high! And a breakout of the W formation. Definitely worth a long position. That’s the idea situation. Of course, it can also imply it remains resisted, and comes tumbling down. It has to tumble down before the 20MA turns upwards though. I will definitely be keeping this on the watchlist.

Singtel looks interesting too. Bull flag in the making? It tested the very important 20MA today. Let’s see if we will get a breakout. There are some stocks that have tested 20MA (eg Kepcorp) while others are still far from it (SPC) but many others have broke through it successfully. \

 But the most important has to be that of the STI right? You’ll see the first fibonacci resistance at around 2045 which is what it needs to test, but not before going through the 20MA first. Look at how badly beaten down the STI has been. To form a higher high, where do we have to go? We have to actually go beyond 2245. It has been crazy isn’t it? I’d like to see some consolidation, form a higher low and all that. Where am I looking? Looking forward, nothing has changed. I still see green pastures, with bulls dining here and there. A possible target from me is where 50% is, at 2685. This could take months, but judging from how crazy and volatile the market has been, I cannot discount anything at all. Could a consolidation takes us through 1 last flush down to the lows? Perhaps. Do we  break it? I hope not. But that is just it. Hope. Rather than hope. I will react to whatever the scenario is. So it doesn’t matter if its 1000 or 3000 (although at 1000 you wonder how many people will lose their jobs in the near future).

I’m outta here for now. Have a good week everybody!