Technical Brief – Oct 21 2009

Let’s take a look at today’s action.

Yanlord had a magnificant breakout, breaking past the 2.38 downtrend line and MA resistance. The price surge will be normal due to short covering and people jumping in to go long.

Downtrend technically violated and head and shoulders formation is also negated. One of the early signs of a breakout was a re-test of the downtrend line a couple days back on higher volume. It suggests ‘eating’ up of the sell queues in the region.

A look on the STI. The bias is still on the upside. This is negated if 2660 fails to hold on the downside, negating the bullish momentum. The probability of 2700 is there, where 2750 would be the first major resistance it will face. Current indications suggest this could be taken out as well, leaving a price target within the region of 2900-3000.  The consolidation phase seems prolonged, with the STI lagging behind the HSI and DJIA.

I notice ST Eng has had a huge running streak. At this rate it looks set to retest 3.16 major resistance. The same price i bought a while ago which was at major support.  Unfortunately it broke down and never saw that price again since.

Admittedly i have been on a very lousy streak of late. Everytime the market goes sideways I will end up losing money. Perhaps it is time to set stock trading aside and head into the forex market riding on clear trends. I am quite tired of kelong price actions.. trading halt and goodness knows what else. At least I won’t face that in the forex market.

Jay has begun with the demo account. Once I am done with my exam maybe I will dabble in it too.

Btw I would just like to share, I have exercised my option for my new apartment! In a couple months I will be looking at designs and reno. Once I get the keys I can get down on it. It is one of my dream come true.. There are dreams which will remain a dream. There are others, which you fight for. This is one of them.

Wish me luck folks!