A Merry X`mas indeed ?

Yesterday, i saw the Dow Jones broke the 200d MA and i tot that was ominous enough. To my surprise, STI and HSI did not plunge further but STI rallied instead. Now as i am looking at the Dow Jones, it opened on a gap up. I must say i was quite taken aback since usually Dow leads the HSI and STI and now the vice versa has happened.

STI was supported on the previous support level made in the Nov correction. Today's volume was heavier den the previous down days and that is good. That is a good chance that it may hold at this level.

Straits Times Index:


Today, a lot of counters tested their November correction level successfully. This represent a good chance to enter at a good reward to risk ratio. Nothing is absolute in any analysis so if this November correction level fails to hold, it will be time to get out to limit losses. Below are some counters which are at a strong level of support.

China Hongxin is supported on the 200d MA and a trendline that goes all the way back to March. Notice that this trendline has been tested 4 times successfully and these are signs of a valid and a strong supportive trendline.

China Hongx:


For the STX PO, the level of $2.59 has been a important level. It started off as a resistance level in July before this resistance became a support level in Sepetember and November. It tested this level successfully today. However, this is a very volatile counter as it can move up and down a lot of bids in a single trading session.

STX PO: