STI Weekly Technical Outlook (28 Sept - 2 Oct 15)

 

Straits Times Index (STI) Technical View:
Long Term(6mths or more) : Bearish
Mid Term(1-6mths)        : Bearish
Short Term(1mths or less): Bearish

Trading the Singapore Market (Long Trades)
Long Term Trades : Not Preferred
Mid Term Trades  : Not Preferred
Short Term Trades: Not Preferred

Levels to watch:
Resistance 2: 3,150
Resistance 1: 3,000
Support    1: 2,800
Support    2: 2,700

Probable STI Movement
Preferred  : Sideway Range between 2,800 - 3,000
Alternate  : Bearish Downward movement towards 2,700

Remarks: STI is testing its 2,800 support level. If broken, STI will likely to continue its downward movement towards the next support level at 2,700. STI movement bias is tilt towards Bearish as the recent short term highs are trading lower.

Comments on STI Technical View
Long term trend is bearish as 50 Days SMA is trading below the 150 Days SMA and 150 Days SMA continues to be downward sloping.

Mid term trend is bearish as resistance (3,000) holds, even as MACD is bullish.

Short term trend is bearish as ROC(10) is downward trending and recent short term highs are trading lower.


*Disclaimer Applies

Notes: Mid Term period definition has been adjusted to as 1 - 6 months from this post onwards.

Technical Terms (StockCharts.com):
Dow Theory
Moving Average Convergence/Divergence Oscillator (MACD)
Moving Averages
Trend Lines
Support and Resistance
Rate of Change (ROC)

Popular posts from this blog

Wyckoff's Law of Effort

Image
Law of Effort Wyckoff's Law of Effort states that on any single trading day (or week depending on time frame), huge volume (effort) push by participants should see huge price movement, resulting in a wide spread (long body). This is a basic principle of effort and result. However, as per Singtel's case study, we saw huge selling volume on 11 May, yet the price action only shows a narrow spread (small body). This divergence of effort and result in Wyckoff's Law of Effort principles, indicates possible exhaustion in selling or hidden buying. Thus, with a lack of weakness, Singtel should continue trading range bound for the coming days or weeks till further strength or weakness is observed. Swing Traders who trades range can consider positions at 3.70-3.72, with exit target 3.76-3.78.
Read more

Bullish Case for Bitcoin

Image
BTC Exhibiting Signs of Accumulation 1 year after BTC price plunged from its US$20,000 high to a recent low of US$3,215.20, now we are seeing technical evidence of  accumulation by the smart money is in progress . Above is an illustration of Accumulation Zone of the Wyckoff Price Cycle. We are watching very closely for price to cross the creek (est. US$4200 level).  A break above the level, we deem that price has proceeded into the Mark Up Phase with 1st objective at US$5,800. If creek is not crossed, a break below US$3,190 will falsify our Accumulation zone analysis. Join us in our FREE Introduction to Richard Wyckoff Seminar to learn more about the method and how the method add value to your market timing analysis.
Read more