technical analysis for this week

since i'm still currently being bogged down by tonnes of work and studies, i can't seem to find time to trade as of yet. but rest assure, i'll continue during the next week if the market permits, and at the same time, share my trading strategies as well as my profits and losses.

this time round, i'll give a more comprehensive analysis on the two stocks i'm watching. first up would be SGX.

from today's close, the share prices were at 7.19, down 0.96% from the day's open to close off in the red. for the past month, the stock has been trading below its 10, 20 and 50 day EMA, sparking a continuous downward movement since then. between the period of april 20 to may 20, a head and shoulders formation was seen, where the last shoulder triggered the downwards spiral from then on. a clear support can be seen at the 8.00 mark, where the share prices consolidated before the drop in the RSI triggered the breakout in support levels. the same can almost be said for the 7.50 support, where a short term consolidation was proceeded with another loss in momentum to carry the share price further downhill.

looking now at stochastic readings, both fast and slow stochastics a looming down on the oversold levels, and RSI readings shows a cutting below the 20% mark. can't really pick out much from MACD readings, just that it still remains below the signal line and would most likely remain so.

outlook for this week would be again, negative. 7.00 didn't seem to prove to be much of a strong support in the past, but this week may see a testing of the support. since the price is currently about 2% above the support, i won't advise going long for puts as of yet. for those who loves risks, you may consider going for a higher leverage on your instruments, or warrants, which has a high gearing and low conversion ratio.

now let us take a look at one heck of a volatile stock, and one of my favourites, Capitaland.

from today's close, the share prices were at 5.81, down 4.44% from the day's open to close off in the red. for the past month or so, the stock has been trading below its 10, 20 and 50 day EMA, sparking a continuous downward movement since then. between the period of april to early may, a triple top formation was seen, where the last spike triggered the downwards spiral from then on. last friday saw a huge upward spike in the share price, not sure what it reacted to but it was the much needed retracement for the continuation of the downward trend.

looking now at stochastic readings, both fast and slow stochastics a remains noisy in the oversold region, and RSI readings shows a downward movement, probably heading for the 20% mark. can't really pick out much from MACD readings, just that it still remains below the signal line and would most likely remain so. the spike in the stochastics is my much needed indication of a downward continuation. the stochastics react very quickly to price fluctuations, however, RSI still shows a downward movement. this would indicate that the stock doesn't have the momentum for recover, but the spike in the stochastics is actually giving the stock prices a further downward push for the week.

my verdict on this: very good! gong long on puts would definitely help during the week, as a further movement to the 5.60 mark and below is highly likely. now is the perfect time to go long on your put warrants, hopefully you'll make some money this week. i believe that the share price may retreat to levels of about 5.40 to 5.50, a good 10% drop or so from today's price.

Have a good trade week ahead guys, and hopefully you could make some profits on Capitaland.