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:

Kiss of death for Golden Agri

I spotted a classic chart today and that is Golden Agri. This counter has been trending upwards very well along with Wilmar and IndoAgri for the past one or two months. We can see in late Oct, it broke out of it's channel resistance and this resistance trendline turn support subsequently. It broke this support trendline 3 closings ago and today it tested this trendline as this trendline changes from support to resistance. U can see how this counter tested the trendline by forming a 'wick' on the candlestick and that's what i call as the kiss of death. Furthermore, the volume was very light today. So technically speaking, this counter is likely to head south.

Golden Agri:


For indices-wise, everything is going as i expected. Currently there is no retracements and it has been closing flat for the past few closings. We should see some movement soon.