Technical Analysis – 6th Jan 2008

Loads of bearish piercing patterns on the charts today but that is not surprising after such a big move up. I will still be looking at support levels to see if they hold. Capitaland looks good at 3.30 so let’s see. The 1915-1920 level is still key on the STI and it is indeed a make or break level. It determines if things will retrace, or reverse. If it retraces this is bullish and is a good opportunity to go long. Conversely, a reversal is when resistances hold and the price trend back downwards. STI has a gap support and it is not a question of if it will fill, but when.  A small one, between 1850 to 1835.

Noble group has the ugliest candlestick formation of a shooting star.  1.18 is crucial and any chance of a further upside must see it test 1.20 and 1.25 set today. 1.09 should offer support for now before 20MA comes in. I will be watching this closely.

Everyone is anticipating a rally into the budget speech and then Obama’s induction too. A strong rally into it will almost pave the way of a correction (sell into news), but question is everyone expects it to sell into news, we might have it come earlier, or perhaps later than expected. I will continue charting as it gets along.

I will be away on holiday between 21-29th Jan but I will still post if there’s anything substantial enough to notice.

Have a good Wednesday!

US markets are all green now but well off it’s highs with the dow dipping into the red marginally earlier before rebounding.  I’d like to see more volume though.