Weekend review of STI and DJIA

Dow Jones did not hold the trendline dat i posted for my last post. It broke the trendline convincingly and now we are looking at at the Aug and Nov correction support levels again.

The level of around 12710 is the level for the prior corrections as seen on the chart and we shall see how DJIA approach this level. This level is a very significant level so there is some chance that it will bounce off this level by showing a hammer candlestick perhaps. If it breaks this level, it will be very bearish since this will result in a lower low according by Dow theory.

Notice that the trendline for the A/D has been breached and there is also a MACD crossover.

Dow Jones Industrial Average:


For the Straits Times Index, it rebounded off the resistive trendline. Similar to the DJIA,
the level of around 3300 will be a crucial level since it was the support levels for the August and Novemeber correction levels thus this level is likely to act as a support. We shall see how STI test this level too.

One thing is for certain and that is STI will gap down for the opening on Monday since DJIA closed so badly on Friday.

Straits Times Index:


Lian Beng broke out of it's historical closing level on last thursday and we saw a doji on friday. The candlesticks were unshaven which implies that they did not close near their highs so this does not give a good signal of a strong breakout. It is likely we may see some retracement back to $0.78 before the start of any other movement. $0.78 is a significant level since by technical analysis, resistance levels often converts to support levels. It was a resistance level twice thus now it has turn to become a support level. Notice also dat the volume has become light again.

Lian Beng:


For ChipEngS, it's hard to determine where it is heading. It is falling with declining volume and that is very typical of a flag formation. Gotta see what this develops into.

ChipEngS:


ChinaXLX broke out of it's resistive trendline on friday. This counter has been under my watchlist for a long time. It should land around the 50% fibbonacci retracement level which is also near the resistive turn support trendline.

ChinaXLX: