Technical Analysis – Feb 26th 2009

The market has been weak, being unable to hold onto gains. Projections are showing that 1470 is gonna be tested in the short term but the market may decide to sorta trend sideways for a while as well so either scenario is likely.

UOB is due to report earnings soon wrapping up this season of reporting and thereafter the focus will be back onto the same old story. ECONOMIC CRISIS. So the timeline for this move down could be set in March. UOB has been quite weak and 10.50 will offer as resistance for now with the immediate one at 10.40. Actually they are about the same resistance come to think of it. A crack below 10 bringing it to single digit should find minor support with fibonacci projections at 9.58.

StraitsAsia is beginning to look interesting. I would like to begin queuing this to short at its very powerful MA resistance at around 85c. If it does hit and turn down, we’ll get the lower low and lower high set up. Cut loss is fairly near at 90c giving this a pretty good risk reward. Indicators which are lagging are not turning down yet but if it hits 85c and turns down, sell signals could be triggered.

ST Eng is another counter that I entered today. Very nice downtrend line capping gains while support is where the fibonacci lines are. Early sell signal is triggered. I shall await confirmation if I should add more where the ultimate support is at 2.1 for now where a rebound could occur possibly. If the trend continues I am not expecting this to hold. It remains CD till end of April with a 12.8c dividend, if I am not mistaken.

I also like SIA for a trade. A close below 9.80 almost certainly puts the target at around 9.2. 10.40 is immediate resistance with the current support being held at around 10, a nice even number play.

Continue to watch as we look for the next trend to take place!