Technical Brief – 8th Sept 2009

Sorry for the delay in posting. I was very busy with work and am preparing for trip overseas from Thursday. I will be back by Hari Raya Puasa period. The markets have been heading sideways and there isn’t mch to talk about. Till now.

I was expecting this week to close with a white candle and from the looks of it so far, it is in formation. The STI formed a higher low and is bullish in nature giving it the chance to form a higher high. That higher high would imply at least a retest of 2700 with a possibility of breaking out.

CityDev was forming an ascending triangle and it broke out today. Property rallied with Kepland retestingthe breakout level today. I also noticed a buy signal in Mermaid.

Trade carefully however, on the long side. The short-mid term looks alright so far but be prepared for a reversal if breakouts fail. A breakout on the STI could negate the bearish divergences which could take the STI towards 2480. This would be unlikely if a breakout occurs. Big caps seem to come back into play even though I wasn’t expecting so. This could lead up all the way towards month end window dressing period.

Trade safe and I will come back for a roundup before I leave!