Chinese New Year gloom

First of all, a very happy chinese new year to all of you :) But i guess the festive spirit somehow did not spread to the markets.

For the Dow Jones Industrial Average, it broke out of it's rising bearish wedge formation and it closed with a shaven black candlestick with heavy volume. It is expected as it failed to broke through the resistance level that was highlighted in my previous posts. The next support level is likely to be at around 11620. This also register as another time where the Dow Jones failed to make a higher high.

Dow Jones Industrial Average:


For the Straits Times Index, it opened with a huge gap downwards below the psychological support level of 3000 easily despite STI opening only for half a day today. Next likely area of support is 2744.

Straits Times Index:


Cosco Corp seems like a prime candidate for shorting. It bounced off it's resistive trendline with a inverted hammer and it broke the gap support at $4.4. Furthermore, the A/D line is also showing bearish divergence. The likely support level or the target price is around $3.83.

Cosco Corp:


Yangzijiang seems to be ready to be shorted too. It broke out of it's triangle formation but it rallied back to touch the support now turned resistance trendline. Notice that it failed to close back above this trendline. However, this counter seems to be slightly riskier than Cosco Corp in my opinion since the support level is quite near.

Yangzijiang: