CHEONG AH!

Wow look at the rally today! On heavy volume, plenty of short covering! Even I had to run from my SPC and Sembmar shorts. Oil, property and banks leading. Cosco also had heavy short covering. Capitaland very heavy on volume, closing right at 50MA. I did enter some shorts as tikam, those at 50MA, with a strict cut loss point. Notice the diff between UOB and DBS.

HSI also went crazy hitting its MA resistance point almost at 13500. STI confirms 1580 and tested 1650 before breaking that too. Will it hold? Next resistance is 1680 and then the all famous 20ma resistance on the weekly chart which is now heading horizontally at 1703. I am fairly confident this one will not be breached.

HSI’s weekly 20MA resistance is at 13540, lo and behold. The dow is a long way from where it is… 8112. 7550 is critical for it, after which 7800 will be the next one.

Remember the fundamental rule.. if it is bullish, supports will hold, resistance will give way. A lot of bears would have been killed today while bulls are killed during another season. When one side gets killed, a trend reversal may be occurring. However be very careful of big whipsaws, bull and bear squeezes. I am gonna use weekly 20MA resistance as the projected limit to upside for now, especially for STI.  Resistance turn supports are now 1650, 1580, 1560. Between you and me, I opened a position on DBS today. It hit the price I wanted. $8 is very strong resistance, as well as 50MA. 100MA at 8.26.  Volume was not exceptional.  Weekly 20MA is 8.18. Fairly good overhead resistance. Supports will be gap covering below till 7.80.

Cosco actually had a bull flag formation though volume wasn’t consistent. Breakout. 100MA resistance at 83c and interestingly while the other MAs are pointing down, 100MA is beginning to point up. Hmm..

So much for now. I will return soon as we head into this very interesting week!