CapMallsAsia - Start of an Uptrend?

Is CapmallsAsia (CMA) downtrend stopped? Looking from the chart, it seems that the bear is finally exhausted and the bulls are coming to take over.

Analysis:

• An exhaustion gap is seen at 19 Aug 2011 as it gaps down to 1.14 on that day.
• A doji is form on 19 Aug 2011.
• Subsequently, the next 2 days the price's closing is higher than the precedence.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

STI Index Direction - DTD 23 Aug 2011

STI closing is coming to the support of 2680 (Point B). Can this support hold? Let's analyze:

Analysis:

• The market is weak and the bear is strong as the selldown is above its 20D VMA
• There are no catalyst in the market for traders to LONG stocks as Europe and the United States are still in limping condition 
• Closing for the day display a spinning top, which mean buyers and sellers are in a tussle.
• If STI market bounce off from here, we could probably see a technical rebound.
• Else, we may see a breakdown of 2010 low and a free fall in STI may happen as it may fall back to Yr 2009 lows. CAUTION!!

 
DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

STI Index Direction

Where is our STI Index heading?

As you can see from the chart, STI is now touching the classical support at 2720.  

Will 2720 be able to hold?  Let's analyze:

1. The volume on the last day closing indicated that there are fear in the market and the sell down is escalating as the volume is above the 20D VMA.
2. The closing on Fri 19-Aug on US market is weak, as it is down by 1%.
3. There are no corporate news as the reporting period is almost over.

With the current analysis above, it is possible for another week of sell down. Let's watch and see.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Identifying Trends

Here is an example of a chart that i have drawn to show trends.

Using DJIA as an example, DJ has been in the uptrend along the two parallel lines since 2010. To draw a trend channel, use a parallel line tool and draw it such that the peak and trough of the index touches two or more peaks and two or more troughs.

As you can see from the chart, candlesticks that runs out of the trend channel is called exhaustion trends and usually after a few days of trading, it will be pulled back into its normal path.




DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.

Tools of the Trade: Moving Averages

It is unbelievable that many people in the market invest in a stock based on rumours or from friend's recommendation without understanding the underlying stocks technical.

Stocks may go up or down as it depends on the market sentiments and performance. As such how do you measure the strength of the underlying stocks. Overbought or Oversold or in neutral zone. It is mind-boggling to any person or a investor without understanding the tools that are used to measure the stocks. Thus i would like to introduce to you common tools used by a market trader to measure its performance.

One of the common tool used is : Moving Average (MA)

• It can be simple, weighted or exponential MA
• Changes in the price trend are identified by the price crossing its MA and not a reversal in direction of the MA
• Price finds support at MA in a rising trend while resistance at falling trend
• The longer the time span covered by an MA, the greater the significant of a crossover signal

Suggested Time Frame setting for MA

Short-Term                             Intermediate Term                            Long Term
10 days                                          30 days                                       200 day
15 days                                          50 days                                       225 days
20 days                                          65 days

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.