Spot-on market analysis and insights from the trading desk

Golden Agri – low risk entry near channel bottom | Technical Analysis | Singapore Stocks


Golden Agri seems to turning up from the bottom of the channel, and has successfully closed the gap (red dotted box), and at the same time forming a W-bottom. Yesterday, the gap was tested via a hammer, and this was also a test of the 20-EMA. This could be a bullish flag which will provide a low risk entry.

Straits Asia – bearishness ahead after violating major trendline | Technical Analysis | Singapore Stocks


Straits Asia has broken the long-term uptrend line and the long-term horizontal support line, which suggests bearishness for the weeks ahead. The short-term target for it would be to test its old low of 1.81. Watch for the markdown phase to commence. It is only a matter of time.

Guest Speaker for STATS Market Outlook & AGM 2010

Today, I was invited as a guest speaker to give a talk at 2009 AGM of STATS (Singapore Technical Analysts & Traders Society) on the “Strategic Outlook for 2010”. Before the talk, there was a poll, and it seemed that the general consensus is for a correction in the medium term. Here also some of the pictures taken from our slides.


Dow Jones Industrial Average

Straits Times Index
Ezra 
 
After finishing my talk, I opened the floor to the public and numerous stock requests were shouted out. Due to time constraints, I only had time to do an on-the-spot analysis for a handful of stocks.

Genting SP – get ready to short | Technical Analysis | Singapore Stocks


This is the 2nd test of the top of the box, watch it closely tomorrow. This stock has found good support at the 20-day EMA (red), and has yet to fall below the 50-day EMA (blue) in a long time. However,if you read between the lines, you will see that there is weakness in the stock. Get ready to short 1 tick below the low tomorrow.

First Resources – time to take profits at the end of the markup phase | Technical Analysis | Singapore Stocks

A climatic move up will exhaust demand for the moment, meaning that it is time to get out until further price action gives a new buy signal. It is also unlikely to break through the strong psychological resistance on its first try, hence a quite short swing trade may be attempted, since risk is limited if a stop is placed at that level. With a lower close on a doji pattern which is also an evening star, it is starting its decline.