more technical analysis

at the close of this week's session, we see, just as i had expected, the two stocks to fall. first of all, lets take a look at SGX.

as a result of the weakening market conditions, SGX stocks continued its downtrend, breaking support levels on one of the days to close below the 8.00 mark. however, it managed a slight come back and ended of the week's session closing at 8.04. from this, we can see that 8.00 is a relatively strong resistance, and further consolidation around this mark may be seen for the week ahead.

next resistance is coming in at around 8.50 levels if the stock can break out of its consolidation. a few factors may be needed. one would be investor interest. currently we can see a low trade volume over the past week, with a peak at about 12 million shares traded during one of the days. a surge in trading volume, or to better put it, buying volume, would cause a significant mark up in share prices, and help to reverse the downward trend. this is at least till it reaches its 8.50 resistance, where i believe a more significant influence is required to push the prices upwards. secondly, we might need to have a strong sentiment across the board of investors. currently the STI has been fighting the bear for the past couple of trading days, and that SGX is somewhat lagging. However, i do believe that the somewhat bullish feel in the market may be short lived and i'd be cautious about going long at the moment, at least until the consolidation phase is over.

as for trend indicators, the RSI is showing a growing strength, and an upwards gradient. fast stochastics are eagerly cutting above the signal already. however, a sustained positive from the RSI and a confirmation from the slow stochastics would be what i need before going long on the stocks. one thing to also look at is trading volume. historically, surges have been accompanied with a spike in trading volume, about 17 million shares to be traded in a day to indicate a bullish movement in the prices.

eagerly bullish investors may want to keep a close eye on this stock so as to not miss the upward trend. for the bears, you might want to get the bull costumes ready.

next up, we look at Capitaland. the trading week saw the prices testing out its 6.20 resistance level but did not close below that. the few days before the end of the week saw the share prices climbing up, closing on friday above its 6.50 resistance at 6.55. i wouldn't say that the prices are going to continue its uptrend yet, because if 6.50 proves to be a resistance, consolidation may appear at this stage.

next resistance after 6.50 would come in at about 6.80. however, trading volume has been rather week with an average of about less than 10 million shares traded each day during the past week. the stock may not have enough momentum to carry it on upwards in my opinion. however, RSI and stochastics shows the contrary. both stochastics showing a positive cut in the signal line, and RSI is showing a positive gradient and creeping up slowly to the hovering 50% mark.

having retreat below its 50-day EMA, i would feel that the next week may be a good week for the stock. a clear indication of stochastics surging above the 20% mark would certainly indicate a buy signal, and a sustained open above 6.50 would make the week's trading session an interesting one.

in my opinion, a positive open in monday's trading session would indicate a buy signal for me. prices may surge up to the 6.80 mark during the week, but in order to have a convincing surge above that resistance level, an increase in trading volume might be needed, along with a positive investor sentiment with regards to the property, the stock, and the broad market. this is another stock the bulls may want to get their eyes on.

also, do keep up to date with the market happenings. with US likely to hit a recession (according to alan greenspan) and the moody sentiment of the local market, a slight uplift may not necessarily be a sustained one.