Technical Brief

I am just back from Jay’s place and all so I am gonna make this short as I will be heading to work tomorrow.

First of all, a special hello to the folks at bullythebear. Especially Elaine, and everyone else!

What a rally! Anticipated? Perhaps but the tenacity of it did somewhat surprise me although the actual target for reboud hasn’t been hit yet. What you’ll see is a buy signal on the MACD histograms over many counters.

STI wise, here’s where we are.  Recapturing the 20MA resistance.  The curent zones are ideal for placing short positions but look out for the big one at 1880 which should hold. A rebound off 1800 technically forms a bullish higher low. One of the questions in my mind is, has the bearish divergence played it’s part yet? 1880 is critical. And remains so.

On the DJIA watch out for an ascending triangle breakout level. If it does come into fruition, more upside. Resistance is around 8200 which is the key level for the triangle lookalike. Break out of that with conviction is bullish. Else, short sellers will come in to short at resistance with a very near cut loss point. Risk reward would be pretty good for them.

SIA did not close above 50MA. Gap covering completed today. A nice green histogram as well. Watch out for the MACD line!

Capitaland re-tested its key resistance level and in fact, you should be looking to go short on such a rally. That is my personal opinion.  For the uninitiated, that’s the 200MA (strong) with the 20MA just above it as well. Bear flag formation rally? Doesn’t seem like it. Came with a lil more volume.  Buy signal triggered by MACD histogram as well, but RSI doesn’t look healthy for the past 3 peaks created too. Caveat Emptor, for those on long.

Tomorrow will be confirmation day. And it will be a nice and long weekend. I am quite dissed with Indoagri. Sorta got ‘conned’ out of the long position, but such is life sometimes.

Trade safe, as always.  Time to go long? In my opinion, unless 1880 cracks up, it is not ideal. Bias, is still on the downside meantime. Tech rebounds are always necessary just as necessary as tech corrections which is normal and the latter would be the case to buy on a correction.