Recovery of the STI

As an overview, the market have seem to recover from this current correction. Both the Dow Jones and the STI showed signs of recovery as they tested their support levels.

DJIA tested the 200d MA on the last closing and managed to close above it and dat is a good sign. Although the candlestick dat is formed is a hanging man which is bearish going by candlestick charting, i think overall it is bullish because DJIA broke the 200d MA on thursday and the latest closing confirms that the DJIA is able to stay above the 200d MA. Furthemore, there is a MACD crossover and that is bullish.

Dow Jones Industrial Average:


STI showed bullishness as it gapped up for it's previous 2 openings. The volume for the last closing was very heavy and that is a good sign. Furthermore, there is a MACD crossover which was similar to the DJIA. Next resistance for the STI will be the region around the 50d and 100d EMA which happens to coincide with the 38.2% fibbonacci retracement.

Straits Times Index:


Overall, i believed that the market have bottomed out last week as they tested their previous support levels successfully. A lot of charts in my watchlist dipped to their support levels and they managed to hold their supports and some of my charts which had a double tops formation turned out to be a bull trap as they failed to follow through their formation. Last week was a good week to load and hold counters for the short term and it is time to go long.

China Hongx is now near their support level. This support is especially strong since it falls on a trendline which has been tested 3 times so far and the 200d MA. This will be a low-risk counter to load in.

China Hongx:


Yangzijiang tested the $1.86 level three times with relatively significant heavy volume and it closed above this level thus this level proves to be a strong support. Currently it is forming a triangle formation and it showed bullish divergence with the MACD and RSI technical indicators. We shall see whether these indicators work well :)

Yangzijiang: