Let’s take some time to look at the Singapore STI today.

STI Set New High of Year

STI continues the uptrend and achieved a new high of year yesterday. I am sure you can see that the market weakens today with black candle. STI high the limit of upper trendline of an upward channel. Therefore, today’s correction is normal to see.

Now, it will be interesting to see if STI can continue to break this high at 2,785 to scale a new high. I will have doubt with that. I am see the volume continues to trend lower and lower despite the upward price movement. This forms the volume – price divergence in technical analysis and there is a likely to have a trend reversal soon.

I am also see the indicator are now moving in the oversold region as well, short term correction down to the lower trendline is inevitable. The lower trendline will also act as a price support too. If you observe that the support is broken in the coming days, there can signal a likelihood of a trend reversal coming.

So, meanwhile, beware beware and trade with care!!!

Singapore STI New High 2009

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.

Higher Possibility of Bearish Formation

The current bull market seems to still remain intact as the second upward trendline is still valid at this point (Red line in the following chart). I have also noticed that the volume is dropping as well. There is no way to propell the market if participation is low.

I am also seeing a bearish cross over on MacD indicator as well. RSI and Stochastic are in the oversold region for quite a long while.

Base on this information, I am seeing that STI is going bearish at least for short term as a correction. The support will be 2,274 and resistance at 2,424 level.

Singapore Straits Time Index

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.

Is It The END for STI Bull Run?

It was a great 3 months bull run on many stock markets since March. That was the same for STI and many people was making money and you can see them smiling day in and day out. The market reacted positively due to the HOPE of a ecnomic recovery.

However, there are some signs that the economic worse case is easing, which may signal a recovery. Therefore, the market was pushed higher and higher. It has come to a point now that investors and traders are questioning whether the recovery is sustainable. This is still too early to confirm now.

Using technical analysis, we are seeing Dow Jones is now hitting with a stubborn and strong resistance at 200d MA. Likely there will be some pull back on Dow Jones.

STI also dived 2.61% today, which can signal the end of the rewarding bull run. I will be monitoring closely tomorrow and day after to look for a confirmation signal that the trendline is broken. For example, the 20d MA is now the support and that is also very near to the classical support at 2,290. One this support is broken and confirmed, the market can retrace downward to the 38% fibonacci support or 50d MA support line.

Singapore Straits Time Index Upward Trendline Broken

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.

Do you think this bull uptrend market will continue on Singapore & Hong Kong markets?

Let’s look at Singapore Straits Time Index & Hong Kong Hang Seng Index today.

Singapore Straits Time Index

Singapore Straits Times Index (STI) was enjoying a good bull run in the past 3 months. Originally, I thought it would follow Dow Jones consolidation or it might even retrace down to the Fibonacci support. However, the market was so stubborn that it refused to fall. Instead, STI broke the resistance with a high volume last week. Now, the previous resistance of 2,280 now become a support. Plus, I am seeing the RSI has rebound on the 50% line suggesting that the bull run will continue. On top of that, 50d MA seem to be crossing upward on the 200d MA, which is another bullish sign.

In short, looking at the technical data, there might be at least one more round of bull run on Singapore market. As of how far it will move up, I can’t tell at this point of time. Instead, I will be monitoring closely to make sure that the market does not break the trendline support, otherwise, a retracement down to the Fibonacci support is unavoided.

Uptrend on Singapore Straits Times Index

Hong Kong Hang Seng Index

Hong Kong Hang Seng index (HSI) is sharing the same pattern and phenomenon as the Singapore STI. We saw a breakout on the resistance last week on HSI. RSI rebounded plus 50d MA is crossing the 200d MA as well.

These are bullish signal. The bull run will remain intact at least for now till the trendline is broken.

Uptrend on Hong Kong Hang Seng Index

Beware of Spill Over from Dow Jones

There are news that GM bankruptcy is unavoidable and the news might be annouced in this coming week as the restructuring deadline approach. The current market might have already discounted this news into the current market. Unless there are some shocking news which drag the market to fall, which will definitely affect the Asian market as well. This is just another point to take note of at this point of time.

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.

I posted yesterday a final verdict of correction is around the corner on Singapore Straits Time Index.

Indeed, a dark candle is formed today and the selling pressure is pushing the STI to close at this low today.

Dark Candle Formation + Double Top = Bearish Correction

STI did not manage to break the resistance and close higher. That disqualify formation of a higher high. It stopped close to the resistance level and form a double top formation instead. I noted that the immediate support of STI is around the 2,176. Now, I shall watch to see STI can hold at this support or not. (While I am writing this post, I am looking at Dow Jones losing 150 points, I doubt STI can be spared on Friday).

If STI indeed cannot hold the 2,176 support level and there will be a tendency for it to correct downward to the 38% or 50% Fibonacci support. Some rebound may appear there, but if the rebound form a lower high peak, haha, that’s the moment I am waiting… The lower high formation will disqualify the uptrend and suggesting a down trending market is forming. I will be looking for counter to SHORT in the Singapore Stock Market as the bear is welcoming us to dance with them…

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.

Singapore Straits Time Index (STI) Stock Market Outlook

STI has now come to a critical point again. It is meeting the immediate resistance near 2,280, which was the high formed on 8 May 2009.

Can the market sustain the upward momemtum and continue to break higher?

Singapore Straits Time Index Stock Market Trends

Bull Run Remain Intact

Looking at the chart of Singapore Straits Time Index, the upward movement bull run still remain intact at this moment. There is continuous formation of higher low and higher high so far. Therefore, it is critical to see if the market can continue to break up the 2,280 level.

If STI manage to break up, then I foresee the upward movement will continue for one more round, the volume still remain healthy at this point of time, although I am seeing diminishing volume on Dow Jones.

I am posting it now and I will try to post again tomorrow to see the verdict tomorrow. If the market shifts downward tomorrow, that may lead to a double top bearish formation. The immediate support will be the gap support at 2,176 level. If it continue to break down this support which will eventually lead to downward movement to the 38% Fibonacci support I predicted earlier.

Anyway, let’s watch for the verdict tomorrow…

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.

We shall look at the Singapore Straits Time Index today!

Singapore STI Stock Market Trend

There are some bad news circulating in the market today. Sony has just released one of the greatest loss they have in 14 years and they expect to continue in the loss till 2010. US jobless rate is also climbing high.

We can see that the Dow Jones was in the red in the past 2 days and definitely this weak market sentiment has spread to the Asia market as well. Singapore Straits Time Index is also correcting downward from its high achieved last week.

Using candlestick analysis, you can see a doji formation after the bull run in the past 2 months. That was the first and earliest indication that a market correction is coming.

You can subsequently see a long dark candle follow, that is the second indication. Volume is also diminishing drastically that suggest loss of momemtum to drive the market upward. Therefore, you can see the market continue to dive.

Now, where do you think the STI will head to? Where is the support.

Singapore Straits Time Index Stock Market Trend

Support of Singapore STI

The immediate support that I am seeing is the 2,000 level which is close to the 38% Fibonacci support and also very near to the 200d MA line. 20d MA is trying to break up the 200d MA now but this is a strong resistance and therefore it coincides with the fact that market is correcting downwards. This will all happen near the 2,000 point level.

If STI cannot hold the 2,000 level, then, it may continue to dive to the 50% or 68% fibonacci to find a support there. If the market can hold above 50% fibonacci line, that another higher low is formed that will suggest end of the correction for the market to resume its uptrend. That will be the time I am looking for counters to long.

So, this is a good critical time to monitor the market closely if you have missed the bull run. Here’s the opportunity that may come again.

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.

Do you think this upward momemtum will lead to a bull run?

Dark Candle at Resistance on Straits Time Index

However, similar to the Dow Jones and Hang Seng markets, Singapore Straits Time Index has hit into a resistance and formed a dark candle on tuesday. However, an interesting note is the volume remains pretty high in Singapore market.

The buying force has not exhausted yet, there might just be some profit taking from the 100 points gain from last friday. I am seeing the support remains at 1,760 level.

RSI in the overbought region but that is not an worrying sign for an upward market. The RSI can remains in the overbought for a long period in a trending market. However, if STI cannot break through the resistance to trend higher, then it will turn into a sideway market and RSI will be a signal to show the start of retracement.

It is critical to watch where the force is tomorrow!

Singapore Straits Time Index 2009

DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.