this week's TA

i know its abit late but i didn't really have over the weekends to do my analysis. i just had too much fun :)

anyways something different this week, i'll be focusing on 2 indices which i trade on, STI and HSI.

today STI opened 50 points higher, but slowly declined as the trades goes on. last week's trading session saw great movements and volatility within the day, gapping up and down and ranging over 50 points on certain days. one thing to note, because of the recent turmoil in the financial markets, the indices tend to follow suit. thursday and friday saw a slight correction after the 3 day slump, thanks to the US Federal Reserves. good thing for me, this would hopefully give the index some momentum to carry on moving downwards.

looking at RSI, it shows a divergence, having a slight downwards slope at the end of the trading week (even though there was a huge correction), stochastics are moving out of the oversold regions after crossing signal and MACD can't really show me anything clear cut yet.

my opinion on the movement this week: if the index today doesn't manage to sustain a positive movement, the trading week may be bearish. looking at the divergence from RSI, the index doesn't seem to have the momentum for a bullish move, hence, expect the bear to come this week.

now for our favourite index: HSI. same thing as STI, the index opened higher than friday's close, but moved downwards as the trading session moved on. last week, the index had huge movements, its 5 day EMA moving further downwards from its 10 day EMA, but the correction on thursday and friday gave the index some momentum to carry its move downwards this week.

stochastics are moving out of the oversold regions, while RSI is slightly positive in terms of gradient. and again, MACD can't really tell me anything much right now as i can't relate them to the previous 2 indicators.

since today seems bearish for the index, and if it manages to stay in the red, the week's outlook may be bearish, continuing its momentum from last week's session.

well, that's all folks. i'm still abit sleepy, if anything don't make sense, please comment. thank you!

back bear back

finally back after a long reprieve. gosh school is such a boring place because of the assignments and tests. if there were no assignments nor tests, i'd definitely enjoy going to school.

lets look at some short term technical outlook for this week. the past week had seen the market being trampled on by the bear due to various economic and environmental reasons. what's in store for this week? we'll just have to wait and see. but before we wait, we shall analyse the market's current direction and project next week's movement. ready? lets go.

for the case of SGX, i doubt next week's picture would be a pretty one unless something happens along the way which may change its course of direction. current stochastics shows a negative picture, indicating further downward movements while RSI remains below the 40% mark. MACD is already almost cutting the signal line (or has it already had a piece of the cake?) and is showing that yes down is the way to go. a technical picture from the charts shows that a support of 5.50 is likely after friday's close of 5.95. this would all depend on tomorrow. a negative session might carry the momentum further downwards through the week.

next up, Capitaland. current indicators show that it would be a good to short. with stochastics cutting the signal line negatively and RSI levels looms just above the 20% mark, the prices are weak. MACD is painting a sell portrait while it starts to cut the signal line again. a 3.80 may be calling? we'll just have to wait and see. technical charts shows that it may enter a short term consolidation before carrying on its momentum. moving down is the most likely option for the prices after the near term consolidation but the already weak prices may get hit even harder.

HSI has been pretty powerful these few days with its huge movements into the red. RSI is showing a slight diversion, making the near term outlook harder to foresee. however, sticking to current indicators, the downtrend is already present. stochastics and MACD are showing a likelihood of carrying the index downwards for the week. the index may consolidate tomorrow, but a sustained open below 20,000 would indicate the rather obvious.

STI took a hard hit as most of the companies took a blow. moving down 3%-4% over the past week is a huge feat, making me wonder where it would fit in on monday. in terms of a technical picture, indicators show signs of a continued downtrend even if it opens above friday's close. support at 2,600? indeed it was supposed to be but friday's session brought it a tad prematurely. if the movement sustains below this support level, then we could see a continuation of the trend for the week or so.

well thats all for me, my eyes are dead with the lack of sleep. enjoy the market week ahead and have an eventful trading session!