Traders’ Club

I have been quiet here for the past few days in respect for Kelvin who passed away.

It is all over and it is time to move on, everyone.

The wave 2 seen on the STI is in progress and as I mentioned, is likely to be fast and shortlived. Fast due to short covering and we have seen that in banks. Plenty of gap supports created along the way. Will it be shortlived? That depends on how the 1580 holds up. The index closed at that level on Friday and UOB is near its $9 level which is attractive, along with DBS as well.  Markets have gotten out of oversold positions and I think I’ll give it a couple more days to see where it heads to.

I’d like to talk more on the traders’ club today as some friends of mine are in it and I think they can appreciate the analysis done during the sessions. It is free for Chartnexus students who have completed their courses as they need to understand TA before appreciating the contents delivered. More importantly, they will be able to analyze charts on their own.

I will not provide posts that are relevant as it is not fair to those who are part of the club but I will showcase an outdated one instead, just for everyone to see how it is like.

I will return next week to have a look at the market. The ‘story’ that Jay and I have crafted is still in fruition. I cannot discuss the details as it is proprietary at the moment, but what we analyzed was the key support/resistance levels for the next quarters, a possible formation of a descending triangle, and the outlook based on the above 2 and wave counts. When wave 2 is done, we will have major down waves at waves 3 and 5. Rebound waves are waves 2 (in progress) and 4 and we are looking at the anticipated lows tested by wave 5.

For now, here’s a snapshot of the summary discussed during the traders’club.

Here’s one taken from February-

Trend:
Weekly – Downtrend
Daily – Downtrend + 20MA pointing down

Support:
Weekly – 1470
Daily – 1580

Resistance:
Weekly – 1960
Daily – 1640 (Minor) 1680 (Major + 20MA)

Observations:
- Stochastic %D pointing up showing possible buying momentnum
- MacD Histogram showing 4g (Possible 4g1r)
- Upside limited as a lot of resistance above
- More downside as the next support is further
- Currently no buy / sell signal

Conclusion:
- Wait for 4g1r signal for further downside.
- Support breaks, signifies lower low with a downside target of 1470
- Look for counters to go short
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Properties Sector:

Citydev

Trend:
Weekly – Downtrend
Daily – Downtrend

Support:
Daily – 4.80

Resistance:
Daily – 5.13 + 20MA resistance

Observation:
- ADX: -DI red line about to cross down ADX line. But ADX is strengthening
- MacD: Bullish Divergence (But failed recently)
- Stoc: Possible bullish divergence
- Candlestick: Bullish harami cross

Conclusion:
- Due bullish divergence, there might a chance of a rebound
- Can go long but be aware of the limited upside from the resistance
- Hence, better be patient and wait for the price to rebound to 5.13 and look for shorting opportunities.

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Offshore sector:

Kepcorp (From MA as resistance XPtrader screening)

Trend:
Sideway

Resistance:
4.30 with 50MA as resistance

Support:
4.18 with 20MA as support
4.05 (Major)

Observations:
- MacD below 0, 4g waiting for 1r
- Last 2 days close below 50MA
- Stoc bearish crossover (Best for sideway)
- BB squeeze
- ADX below 20 (Trendless)

Conclusion:
- Look to short when MacD turns 4g1r
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4g1r XPtrader screening

ST Engg

Trend:
Downtrend

Resistance: 2.40

Support: 2.06

Observations:
- MacD below 0 + 4g1r
- Multiple MA as resistance
- Stoc overbought + Bearish cross
- ADX show weak trend (below 20)

Conclusion:
- Look to short side on the following ESP

E: 2.25 S: 2.41 P: 2.06

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Other counters of interest: Sembcorp, NOL, Straits asia