Rain doused off the bears

Today's rally was a surprise to me given that the Dow Jones din move much at all for the past few closings. I guess somehow the heavy rain today made the bears all went into hiding as the STI rallied strongly today :D

For the rally today, STI tested the 100d MA again and failed to close above it. The last test was 3 closings ago. Notice that the 100d MA is near the level of the previous gap down so this forms a level of resistance. Furthermore, the combination of the last 3 candlesticks formed a tweezer tops and currently, i would establish the next level of resistance that is to be broken to be around 3580.

I dun think it's much of a problem since STI has already formed a higher high and a higher low. By Dow theory, this signifies a uptrend as stated in my previous posts.

Straits Times Index:


Asia Env has finally covered the gap down made in late july at around $0.80. That in itself is a piece of bullish news. Today's closing was strong as it closed with a long shaven white candlestick with heavy volume. This counter has been in my watchlist for the past one or two months when it showed bullish divergence with all the 3 technical indicators that i used when it was at around $0.675.

Asia Env:


Another surprise for me was that Golden Agri breakout against it's resistance trendline ! It really took me by surprise as i reckon that technically speaking, it should head south in my post yesterday. I must admit i made a bad call for this counter although i dun think my analysis is that flawed . Well as i always like to say, the market is always right and opinions can be wrong so my opinion is wrong this time. If u have a 2nd opinion about this counter or if u wana point out any mistakes i made, u can drop me some comments in the shoutbox to help me out :)

Golden Agri: