Wednesday, October 12, 2011
STI - Oct 11
Background: In the past few weeks or even months, I have been quietly following the market. I must admit I haven't been posting my analysis of the market for quite a while now, primarily because I am rather "uncertain" about how the market will swing.
My view of the market:
From the chart, we can see that every time STI climbs above 20 day moving average(20DMA), it falls back below the 20DMA. And the recent rise in STI was accompanied by declining volume. So, will history repeat itself?
GMMA indicates that we are in a down-trend. And we are in indeed in a down-trend as 20DMA is below 200DMA. Smoothed RSI is about 50%, do notice that every time RSI hits 50% or thereabout, STI starts correcting itself.
Also, do note that earnings season is here. On Wall Street, Alcoa kicked off earnings season today and DJIA is off around 16 points today, a trading range for today was "small" - DJIA fluctuated between less than 100 points, an anomaly of late.
In Singapore, Singapore Press Holdings (SPH) will be reporting her earnings today. So, how will the market pan out? Time will tell I guess.
Interesting Chart patterns:
Bearish Engulfing - Wilmar
Shooting Star - Genting SP
Ok, will be signing off here. Trade/Invest wisely and stay safe (in this volatile market)!