Technical Analysis – 16th June 2009

Another session of selling off today with a slightly higher volume. The STI cracked 2280 and boy did the short sellers come in fast and furious. Short covering towards the end of the session pushed the STI back above 2280 but below 2300.  A little black hammer is seen but may not be seen as a reversal candle for some. I remain neutral on this. It is definitely not the market to short sell. No short signals, momentum is still bullish. ie if one went short, it is based on intraday momentum but that does not form the broader picture that is seen.

Let’s see if 2300 and subsequently 2325 can be recaptured. Minor support turn resistance.

I screened my charts today even though I did not anticipate any buy signals. So imagine my surprise when Singtel came out! And wow what a rebound today bucking the trend of the broader market. I am not gonna go on a trade with this cause I am taking a break from the market to focus on other stuff. Besides next week I will be away on training for 3 days and I do not want open positons during that period. For Singtel note the lil bearish divergence but it is not a very strong one. Breakout level is at around 3.1

The weekly chart explains why the resistance has been holding. A very nice 200MA hovering right on top. So for breakouts to occur, you wanna see volume. Huge volume. Without it, beware.  Singtel has been going sideways for many months as seen by the weekly chart and is something I would choose to avoid. Cut loss for a trade on this is around 2.87.