Technical Roundup – 9th Jul 2009

Quick check on the markets.

The STI completed the gap resistance cover and closed just shy of 2320. It however did close above 20MA. Refer to the chart as seen and as I described yesterday, immediate resistance at 2300 and 2320. Question is, where will I go short, or long? Short, if 50MA does not hold, and a crack below the uptrend line. Long if it breaks out from symmetric triangle on the upside (break out of downtrend line with volume). Based on TA, a sym triangle has the tendency to continue it’s previous trend. Will it continue this time? Only time will tell. If it simply gap covers and turns back down from 2320, I will be staying away till there is a clearer picture. Else may get slapped by the market as it still trends sideways.Property and banking shares rallied but stopped shy of resistance levels.

CityDev closed right where it started yesterday.

Jardine (my darling for now) continued its move up. I love the chart for upsides.

DJIA critical resistance remains at 8270 region. Current chart formation and indicators are both bearish. Very bearish. Failure to recapture above resistance could spell more downside in the short term, below the 8000 mark.