Morning brief

Sorry folks I dozed off before I could do my posting last night! grrr…
I am on leave and am gonna be out in the afternoon but I will be looking at the morning session to see how things go.

And so, the swine flu outbreak in Mexico is sending jitters across the world. Reason is simple. If it becomes a pandemic it will make recovery even harder in this climate.

Without going into details, let’s turn our focus onto the charts instead.

On the STI, the last higher low was formed at 1760 and will definitely form some support there. In the immediate term, 20MA might have turned resistance. This will be confirmed in the session later. STI has to close above 1830 to stay above 20MA, failure of which 1800 comes into play. A crack below that should see 1760 being tested. We still don’t have that 1 day rebound yet and so far it had been range bound, till yesterday. Jay was right that last week would be range bound. Resistance will be at 1870 (target for a green day upside play) and now, 1830.

SIA got crushed as expected due to pandemic fears. It had cracked it’s very important 61.8% retracement and let’s see where this heads today. If it confirms the crack I will redraw the fibonacci within a shorter period of time. Notice the crack came with high volume dumping.

I will be looking at my long plays on Olam and Indoagri for some profit taking while looking at my shorts on SIA, Capitaland OCBC and UOB. UOB has been pretty resilient! For OCBC, first support at 38.2% retracement at 5.20 (tested yesterday) thereafter around 4.97 and 5.11 will also offer some support.

Capitaland should find some support at 2.41. It has gone one heck of a way and should be due for a technical rebound from that level. My guess is however as good as yours as it may get past that and head towards 2.30.
I may come back later intra session to comment more. For now, sit tight!