Stock Analysis 27/02/08

Basically all seem will breakout downtrend soon..

STI Analysis as at 010208

Base on the small picture STI chart, current STI resistance is at 3168 and 3300. MACD, stochastic and RSI is pointing upward. However STI is still in the downtrend category.In order for a bull run, it needs to breakout the downtrend line and does not fall back again.

Base on the big picture chart, I find that current chart pattern is very similar to previous two correction. If STI is able to break above 3168 and does not break below 2963, a bull trend might start here. This means a newer high and newer low is formed.

STI as at 30/11/07

Stock market has gone a very turbulence month in November. However this week it had started to rebound strongly. STI has already breakout the downtrend line. Stock market is rising with very high volume. Many people still say that stock market is very unstable. Do not dare to enter. However I have a different view. I feel that this correction has made the bull run stronger. STI breaking new high again is not a problem. When stock market is rising, good news will just keep coming out. Bad news will be ignored. Every dip now should be an opportunity to buy.

Cheers.

Jiutian Analysis

Jiutian had rebounded off from 50 days moving average. Stochastic, ROC, RSI and MACD show sign of rebound. Base on TA, there is high possibility it will rise further and break resistance downtrend line if dow jones do not drop tonight. Next resistance is at 0.65 and 0.68.

Jiutian has the warrant that allow warrant holder to subscribe jiutian shares at $0.80 within 3 years. Therefore i think if the company want to raise more fund, they will try to push their mother share price to above $0.80 soon.

STI Analysis as at19/10/07

The following explain why dow jones have dropped so much base on TA. It is a bit similar to my analysis posted last Sunday on dow jones chart in my blog. To me this video only talk after dow jones drop, so a bit useless.
http://www.youtube.com/watch?v=H7BmsY2hei8&NR=1

Now we have to find where is the support level for STI.

Next support level is at 3688, which is the previous high of STI and also 23.6% of fibonacci. I would say this support is not strong enough base on current market sentiment; should be easily breakdown. STI need to close above 3688 points on Monday if not, i don't look good on the STI market.

Next support level is at 3550, which is the 50 days moving average and also 38.2% of fibonacci. I think this support should be stronger, and not easily breakdown. If STI is able to rebound from here, it will be very strong up trend again.

Next support level is at 3440, which is the neckline of the previous inverted head and shoulder form during August. (it is posted in my blog during August). However fibonacci 50% retracement is at about 3430. Anyway I hope STI will not drop till so low.

The index points are only a rough estimate, it can be plus or minus 10 points from what i have given.

STI has closed at support level on Friday, which i am very happy about. However after thinking, it may be shortist covering back their position which resulted rebound during last half an hour. Dow jones drops 366 points on Friday, head and shoulder neckline of 3740 will definitely be broken down. I am very bearish on the market. Please do not enter any position even you think the stock is at a very low price. You will not know where is the lowest price. Even there is a rebound on tuesday or anyday next week, please do not enter; it may be merely technical rebound. Wait for the chart to signal buy before we enter.

Dow Jones Analysis as at 12/10/07

Dow jone had touched the moving average line and rebound on Friday. This signal that bull trend still intact. 14000points will be the support level now. If it breaks below 14000, next support will be around 13879 and 13747. Many indicators have shown some bearish signal. I have to say we are in a very dangerous level now. MACD, RSI, Stochastic are showing downtrend when dow jones still rising. Volume transacted on Friday dow jones rise are lesser than Thursday dropped. The rebound might be a bull trap or just a technical rebound from moving average. I hope the 3 indicators will change direction in the coming days, if not, i don't feel good about the dow jones market.

STI situation

STI still remain very bullish even though it is at its peak now. Any dip in STI is a chance of opportunity. I cannot detect sign of BB taking profit. Chances of STI break new high again in coming week is very high. Current market is very bullish. If there is no sign of bad news, yet STI drop, it may be a sign of BB profit taking. Then it maybe time for you to take profit for your shares, otherwise i suggest hold for most of the shares. Normally after BB take profit, bad news will just appear to make the stocks to drop further. Market is very manipulative.


Signal for BB taking profit; if tml, STI gap up and close flat or close negative.