Technical Analysis – 18th May 2009

The STI reversed its losses in the morning session to close higher by the end of the day. I wish I could show the STI chart but there is something wrong with the data so that will have to wait.

I took a position in SGX today. I was anticipating a white hammer reversal pattern and by the close I had it! There were no buy signals observed across the board today. Jay was right. It may have to wait till tomorrow where buy signals are out. So no real buy signals still, only bullish reversal candles. SGX is one.. very nice one, at a nice location. A touch at 20MA support, which is also 50% fibonacci support.  Apparently it closed near its fibo resistance but I took the chance (I knew I said no more tikam..) cause if the trend continues this might gap up. On the upside there is going to be a gap resistance between 7.32 and 7.5, giving this a possible 50c play, with a 20c risk on the downside. Pretty good enough for me. I also have STI and HSI call warrants. I have to say, the call warrants ARE HORRENDOUS. The premium is so high! Very little gains when the trend is in line but when it turns against, the call drops like hell. Eg, on Friday the STI closed some 17 points in the green but the call warrant actually closed red…

I also like DBS’ volume on retracement, a touch and go at 38.2% support. I kinda missed this today but let’s wait for a possible buy signal tomorrow before I enter. If there is a buy signal, 11.54 would be the best to enter. Watch for price action! Notice the increase in volume today

SIA did surge but did not come with volume. As such 200mMA resistance remains. 12.30 will be the next resistance  and a break above it should be fun to watch! I do notice stochastics beginning to turn up, something which SGX has not begun to do so yet. Hmm damn I forgot to see that when I locked in my trade!

Olam gave a fantastic show by reversing the intraday lows set in the morning to close well above 1.70. Not enough to trigger a buy signal yet though. Noble, same story.

Keep your eyes peeled!