Showing posts with label Technical Analysis. Show all posts
Showing posts with label Technical Analysis. Show all posts

Thursday, April 16

STI Technical Analysis 16th April

Posted by at No comments


The Straits Times Index is currently near a pivotal point as it is near the resistance level, which wa the previous peak of around 1933, formed on the 7th of January this year. It tested this resistance level but it was unable to close above this level today. We should be able to know the new direction of STI soon, depending on whether it can breach this resistance level.
Labels: ,

Wednesday, March 11

STI Technical Analysis 11th Mar

Posted by at No comments

STI has fallen below the support level of 1473 made on the 28th of October last year. I expect that there will be more downside to come.
Labels: ,

Saturday, February 21

DJIA Technical Analysis 21st Feb

Posted by at No comments


Yesterday's closing was rather pivotal. The low of 7449.38 made on the 21st of November failed to hold as a support level and it closed at a level 7365.67 with heavy volume. This means that the risk to a downside has increased and DJIA still has some way to go.
Labels: ,

Thursday, January 29

STI Technical Analysis Jan 29

Posted by at No comments


It's been 3 weeks since I posted on the technical analysis on the STI. Market volume seems to be creeping back although it is still not that strong. Currently, we are looking at the level of 1677 as a gap support. There was a huge gap formed during December as highlighted by the purple circle and it remains to be seen whether it can hold as a support level.
Labels: ,

Thursday, January 8

STI Technical Analysis 07 Jan

Posted by at No comments
STI seems to have fail break the resistance level of around 1933 with a black candlestick on heavy volume. There is a minor support at around 1828 due to the gap and a trendline support indicated by the blue line if the gap support fails.
Labels: ,

Tuesday, January 6

STI Technical Analysis 05 Jan

Posted by at 2 comments


It's been a long time since I posted for the STI Technical Analysis. This was because in my previous post, I mentioned that the STI will be resuming its uptrend or will at least be consolidating and for the past 3 weeks, it has been doing that. Furthermore, volume was very light due to the festive season i.e. Christmas and New Year Day thus it's pretty pointless for me to do an analysis.

Yesterday, STI closed near its high with a heavy volume that was close to 2 billion and that is significant. My opinion is that STI will continue on its uptrend if it can get past the resistance level of around 1933.
Labels: ,

Monday, December 15

STI Technical Analysis 15th Dec

Posted by at No comments

The volume for the past two trading days of the STI, which were down days were relatively light and that is a good sign. A gap was formed on 9th Dec at around 1683 and I am expecting STI to test this gap as a support level soon. If this testing is successful, there will be a good chance that STI will resume its move to the upside or will at least be consolidating.
Labels: ,

Sunday, December 7

DJIA Technical Analysis 07 Dec

Posted by at 1 comment


Currently, DJIA seems to be forming a support base at around the level of 8100. Some technical analysts are interpreting the current DJIA chart as an inverse head & shoulders formation forming. I am interpreting it as a simple horizontal support at 8100. There was a false breakout to the downside on the 21st and 22nd of November before DJIA rallied back to the support level of around 8100. Due to this failure of the DJIA to breakout to the downside, I am tilting towards the view that DJIA is currently consolidating now for a move towards the upside in my opinion.
Labels: ,

Wednesday, December 3

STI Technical Analysis 3rd Dec

Posted by at No comments


The significant thing I noticed today about the STI is that even though DJI closed poorly with a percentage drop of -7.67%, STI did not gap down that much at the opening. STI opened at a level of 1643.63 and using the previous closing level of 1690.23, it only gap down with a percentage drop of -2.75%. Overall, STI only lost 3% at the closing. I interpret this as a sign of resilience and less panic in the market.

Current support levels to watch out for includes the level of 1571 which was the minor bottom formed on the 21st of November and the level of 1471 which was the major bottom formed on the 28th of October.
Labels: ,

Saturday, November 22

STI Technical Analysis 22nd Nov

Posted by at No comments


Another day of buying up on Friday for the Straits Times Index when it opened on a huge gap down due to the dismal closing of the Dow Jones Industrial Average. STI touched a low of 1570.23 before closing at close to its high at 1662.1. This is the third day of such buying up that has occurred since STI touched the interim bottom on 28th of October. I have highlighted those three days with purple rectangular boxes. You can also take a look at my previous posting on such buying up for the STI here.
Labels: ,

Friday, November 21

DJIA Technical Analysis 21st Nov

Posted by at No comments


DJIA broke out of the support region of around 8219 after a drop of -444.99 points or -5.56 % in terms of percentage and closed at 7552.29.

I took a look at the technical chart using Yahoo finance as Chartnexus only displayed two years of data. The region of around 7600 has been an interesting area since important support areas in the past had been found there. This corresponded to the closing level of 7640.25 on the 31st August of 1998 and 7528.4 on the 22nd September of 2002. Currently, DJIA is hovering slightly above this region so it will be good to take note if this support region can hold.
Labels: ,

Sunday, November 16

DJIA Technical Analysis 16th Nov

Posted by at No comments


Technically, an interim bottom may have been reached for the DJIA. This is due to the testing of the low coupled with a strong closing on the 13th of November. On that day, it tested a low of 7965.42. Previously, DJIA had tested the level of 7882.51 successfully on the 10th of October. I have highlighted both days with purple rectangles. Do note that the volume for both days were heavy and that adds to the significance of the testing of the lows. With the successful testing of the region of around 7900, DJIA should be poised for a retracement back to the upside soon
Labels: ,

Sunday, November 9

STI Technical Analysis 9th Nov

Posted by at No comments


There has been two instances where STI opened on a huge gap down and covered back the gap at the end of the day with heavy volume and that to me, is significant technically. I have highlighted those two days and their corresponding volume with purple rectangular boxes. Why are they significant ? This is because this shows that there are buyers in the market who are willing to buy in at lower prices. Usually, the huge gap down is caused by a dismal closing for the DJIA.

On the 28th of Oct, STI opened at 1496.12 and touched a low of 1473.77 before closing at 1666.49. Percentage-wise, STI managed to chalk up a huge gain of 11.6%. On the 7th of Nov, STI opened at it's low of 1717.66 and closed at 1863.49 and we are talking about a percentage gain of around 7.8%. The movement of these two days suggest that the downside risk is getting limited.
Labels: ,

Sunday, November 2

STI Technical Analysis 2nd Nov

Posted by at 1 comment


In my opinion, STI has formed an interim bottom due to two factors. The first factor is that the current downtrend is getting too steep. If we assume that STI sheds an average of 100 points for every trading session, it will reach a value of 0 which is impossible in just around 16 days. This is completely irrational thus this downtrend cannot be sustained for long.

The second factor is that there was a strong closing on the 28th of October. STI opened on a huge gap down at 1496.12 and subsequently went on to gain a whopping 12.9% of 192.77 points from a low of 1473.77 to close at it's high at 1666.49. This strong showing was coupled with a heavy volume.

Whether this interim bottom is the final bottom is up to anyone's guess. However, there is a high probability of it being the final bottom since STI has tanked as much as the previous Asian Financial Crisis. Using the low of 1473.77, STI has fallen 61.9% from a peak of 3875.77 and that is close to the percentage amount that STI suffered during the Asian Financial Crisis.
Labels: ,
Subscribe to: Posts (Atom)