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Technical Analysis of SGX

Singapore Exchange: Back to the drawing board!

Last post on SGX, suggested a possible bounce as long as price stayed above $8.50. It didn't, and as promised i went back to the drawing board. Here's what i found. SGX is sitting on a trendline going back to the 2009 lows, and is at an important support level around $8.30. With the STI on neckline support at 3120, this is as good a place as any for a rebound. I will wait for the break of the short-term downtrendline, before initiating a trade. Resistance levels as per last post, with $8.50 level as additional one now.

A break below the uptrendline & $8.30 level could be medium-term bearish for SGX. As always, i will have a suitable stop-loss in place. All the best!

Singapore Exchange: Short-term bounce ahead?

A classic case of  "Buy the Rumour, Sell the News"! After SGX went vertical, it collapsed (as all parabolic moves eventually do), and is now back at previous rally high of $8.50. Coupled with the oversold indication on the daily RSI, it is a good place for a short-term bounce towards $8.80 initially,  probably followed by $9.00 & $9.30. A sustained break below $8.50 at this stage will have us back at the drawing board!

As if by coincidence, expect some positive news flow about the SGX-ASX merger in the coming weeks! ;)

It is diving towards 8.05 mark soon.. but let's see how it will goes when it reaches the zone.

Star-Trader

What I observed is the RT-Signal or Line is between 8.00 to 8.05. It could reach that price zone which is on downtrend currently as shown on the OBV as well as indicators, but I don't agree on the support level of 7.80 or 7.90 for 20D MA or 50D MA from your chart analysis (sorry, no offence, my personal opinion only) as one thing we got to remember always is , at certain price level, external influential basis is always there to influence how the market moves which in term can influence the price behaviour.

So, my bet will be when it reaches 8.00 to 8.05, what will be the next signal after that based on the volume, candlesticks and indicator?

Star-Trader

Not rich, that's why must be very sure then can buy.

I will be trading a double bottom if price breaks 875.5 based on monthly charts.

make less never mind, but must be safe.

boyikao3      ( Date: 15-Apr-2010 22:45) Posted: Why leh ? U so rich huh ? DnApeh      ( Date: 15-Apr-2010 22:30) Posted: i want to buy at 875.

SGX has reached the target of 8.3. What's next? Here's my take :)

http://trendlines618.blogspot.com/2010/04/sgx-escape-velocity.html

baseerahmed, thanks for your comments. You may be right about the volume divergence, and we may see some consolidation in the short-term. However, imho the most important indicator is the price itself. (For example, in the early stages of a reversal from a bottom, volume is thin, but price impulses up)

Agreed iPunter. Especially your last line - very wise words.

Intent of my blog is mainly to help my own trading decisions, and secondly - to share & learn from your feedback. I would like to caution friends here not to blindly follow any research (including mine), as there are no "experts" who are right all the time. It's a game of probabilities, which can only be successfully played with disciplined methods.

Presenting with a pinch of salt, here's an update of STI & SGX:
http://trendlines618.blogspot.com/2010/03/straits-times-index-sgx-update.html

iPunter      ( Date: 13-Mar-2010 20:21) Posted: This one can be a real challenge to technical players... It is a real test for them, not so much for their technical skills, But for their emotional skills...  The technical indications are nothing but a road map. But they will be more likely to succeed if they isolate themselves from mundane rumblings (news, reports, opinions, forcasts, etc)...