Technical Brief – 8th Jul 2009

STI – 50MA crucial. Failure to hold could see 2200 and subsequently 2100 retested. Lower high is already confirmed. Will it form yet another lower high on a technical rebound? Resistance at 2300. As the 20MA and 50MA converge, eventually one will give way. Current trend is still side-way. Downside confirm if 50MA breaks.  For uptrend to resume 2350 must break on the upside. Current chart formation can be seen as either a Head/Shoulders formation, or a symmetric triangle.

Jardine has a very nice chart. I went long on it today near 20MA. Notice the higher highs formed seen by the green arrows, and the higher lows formed by the blue arrows. Supports always at 20MA. This chart is typical of a super bull run chart. However to trade this stock, you need a LOT of  guts. Based on closing bid spread today, buy is at 18.26 I think while sell is at 18.44. During trading hours it was doing a pretty normal bid spread. I am rather risk adverse these days but I would do this trade, with a cut loss at below 20MA. Trade this only if you can handle the intraday volatility. But the risk reward for this counter is very good. Damn, why didn’t I see this earlier.

Unlike CityDev, yanlord did not tanked as badly but sentiment is still affected by the massive sell off in property counters. Volume a little high, but is nothing close to the spikes seen in Capitaland and CityDev.

Very nice breakout! I love my choo choo train! Defensive stocks all did very well today. It does say something and where the investors are running to.

Head and shoulders seen. Broken. On heavy volume. Not pretty..

DJIA cracked it’s critical support turn resistance at 8270 region.

In the audio – A little bit on lower highs/ higher highs, as well as lower lows and higer lows, along with their implication and what it tells of the trend.