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Updated: 6 weeks 4 days ago

Straits Times Index close to key resistance of 3630 level.

Mon, 04/30/2018 - 05:11
Straits Times Index close to key resistance of 3630 level.

The Straits Times Index was struggling to find direction last week as profit takers prevented the market to raise higher. During every day, the market opening with bearish action; attempting to push STI to a lower level. However, there will always be willing buyers to hold the market despite strong selling attempts. These bullish buyers tend to dominate the market daily which helped STI to maintain its current level. Therefore, last week turned out to be a flat week. Only 3.83pts was gained. Straits Times Index ended at 3577.21 level.

STI inched higher last week after 2 weeks of strong gains. Has the bullish momentum stopped?

Let’s evaluation STI’s chart for clearer picture.

Trend: Possible sideways to uptrend, 20 wma slightly up, MacD above 0.

Support: 3530, 3450, (20 week MA), 3350 (50 week MA)

Resistance: 3630, 3700, 3860

Observations:

Candlestick – Short white candle.

MacD – 3Gs. Possible bullish crossover. No bearish divergence.

RSI – At 51.9%. No bearish divergence. At RSI support.

Stochastic – At 84.4%. No Bearish crossover. Just entered overbought.

Bollinger Band – Closer to upper band. Band expanding.

Conclusion:

The Straits Times Index managed to continue its bullish streak last week. This further confirms that STI is no longer going in a possible downtrend momentum but it is now attempting to either form sideway or uptrend. It is now coming close to its year high of 3611 level which it has yet to break. Last week’s candlestick ended with a short white candle which indicates that the market is facing possible resistance level from the year high. However, there is no bearish indication yet and hence; one should not conclude that the year high resistance is preventing STI from going higher. More evidence should come from the indicators itself.

 

The mid-term indicators are still trending in the bullish momentum. With MacD creating a possible bullish crossover, this bullish momentum will likely to gain further bullish traction. RSI continued to hold firmly at the 50% level and will likely bring further bullish momentum to STI. Shorter-term indicators are also showing bullish readings currently. Despite weak bullish movement last week, the shorter-term indicators are not showing any signs of weakness yet. However, Stochastic is now in overbought which can bring upside limitation.

 

Bullish momentum is definitely intact in STI currently. Therefore, it is possible for STI to continue to trade higher for this week. It will first test its year high at 3611 level first before it will be able to head higher. Having the ability to break 3611 level will lead STI towards uptrend formation. After which will be the key resistance level at 3630 level. If STI is able to break this resistance level this week, uptrend formation will be confirmed and this will bring a lot more upside possibilities for STI. The next resistance level will be at 3700 or a much further resistance at 3860 level.

 

Despite the confident bullish direction from the indicators, there is still a risk of bearishness. As STI is currently forming possible sideways also, the recent high resistance at 3611 level can force STI to retrace. If 3611 resistance level does not produce selling pressure, 3630 key resistance level can also do so. With overbought reading from Stochastic, STI upside can be limited by these 2 resistance levels. If selling pressure happens at these 2 resistance level it will affirm that STI is trading in a sideways range between 3355 – 3630 levels.

 

In conclusion, the Straits Times Index is currently trading in a crucial period. There is potential for STI to start an uptrend formation. As long as it is able to break 3630 resistance level, uptrend movement can lead STI towards 3700 or 3860 levels. However, if STI is unable to head beyond 3630 level this week, selling pressure can cause STI to form sideways movement. Sideways movement will bound STI in a tight range between 3355 – 3630 levels.

 

What to watch out for this week:

  1. Testing of 3630 resistance level.
  2. Breaking of 3630 resistance level.
  3. Testing of 3450 support level.

Trading strategy to adapt right now:

  • Long traders should stay sidelines unless clear uptrend is being formed.
  • Shortists should stay sidelines too.

This market analysis is part of the premium services that is provided to Jay Chia’s clients. If you would like to find out on what other premium services Jay Chia provides, please visit www.Jay-Chia.com. You can also contact Jay Chia through the website.

Like Jay Chia’s Facebook page to receive more market opinions now!
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The information contained in www.jay-chia.com is provided to you for general information/circulation only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

 

You should seek advice from a financial adviser regarding the suitability of the investment products mentioned, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to purchase the investment product. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest.

 

Any views, opinions, references or other statements or facts provided in this www.jay-chia.com are personal views. No liability is accepted for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on the information provided herein.

 

Bullish vibe dominating the Straits Times Index

Mon, 04/16/2018 - 04:59
Bullish vibe dominating the Straits Times Index

Bearish sentiment was reversed last week in the Straits Times Index. Fear of US-China trade war seems to have diminished over the week as the market digested the impact and possibilities. STI started the week testing the resistance level at 3450 level. There was still some bearish pressure during the day but the bulls were able to dominate the market during the day. However, it was unable to break through the resistance level on that day. The breakthrough happened on Tuesday. Buyers were seen rushing into the market to snap up oil-related counters and financials. This helped STI to sustain above 3450. This bullish momentum continued to be sustainable by these sectors throughout the week. Hence, STI managed to close with 58.8pts higher. Closing at 3501.3 level.

Clear bullish action was seen last week. Will this bullishness be sustainable? How far can STI go?

Let’s look at STI’s chart.

Trend: Possible sideways to uptrend, 20 wma flatten, MacD above 0.

Support: 3450, (20 week MA), 3350 (50 week MA), 3270.

Resistance: 3530, 3630, 3700

Observations:

Candlestick – Long white candle. Confirmation Bullish reversal pattern.

MacD – Turned green. Bullish signal triggered. No bearish divergence.

RSI – At 50.9%. No bearish divergence. Bouncing off RSI support.

Stochastic – At 48.7%. Bullish crossover formed.

Bollinger Band – Broke mid band. Band contracting.

Conclusion:

The Straits Times Index’s movement last week had brought lots of positive vibes in the market last week. This vibe was being triggered when STI broke the key resistance level at 3450. This breakout also confirmed the bullish reversal pattern that STI formed on the previous week. These are positive signs for STI as it confirms that STI is not attempting to form downtrend channel. Instead, possibilities of sideways formation are high right now. Therefore, STI will likely to attempt to reach its recent high resistance at 3530 level.

 

The mid-term indicators continued its bullish momentum last week with affirmation of not going lower. RSI continued to hold above its 50% level while MacD refuses to head lower. Hence, the bullish underlying is still intact. Shorter-term indicators are reversing currently. Both Histogram and Stochastic triggered bullish signal. This signal means that bullishness can persist for this week.

 

With assurance of bullishness from the indicators, it is of high confidence that STI will be able to reach for its resistance at 3530 level. Testing 3530 level will be a mark to determine whether STI will be in the sideways trend. If STI is unable to go above 3530 level and starts to face bearish pressure, it will confirm that STI will be trending sideways. In sideways movements, bearish pressure at resistance level of 3530 can cause STI to return to its sideways support of 3355 level.

 

On the other hand, if STI is able to break 3530 resistance level this week, it will indicate otherwise. Possibilities of uptrend continuation will now be heightened. Breaking the recent high of 3574 level will confirm this possibility. Once there is confirmation, STI will then be able to reach out for its next resistance level of 3630 level and could even attempt to break for a higher resistance level of 3700.

 

In conclusion, the Straits Times Index might still be in a consolidative period currently. This week can be the key to determine whether STI will going in a sideways trend or form an uptrend continuation. The key resistance level will be at 3530 level. STI will likely to attempt to reach this resistance level before it can determine the kind of trend it will be trading in.

 

What to watch out for this week:

  1. Testing of 3530 resistance level.
  2. Breaking of 3530 resistance level.
  3. Testing of 3450 support level.

Trading strategy to adapt right now:

  • Long traders should stay sidelines unless clear uptrend is being formed.
  • Shortists should stay sidelines too.

This market analysis is part of the premium services that is provided to Jay Chia’s clients. If you would like to find out on what other premium services Jay Chia provides, please visit www.Jay-Chia.com. You can also contact Jay Chia through the website.

Like Jay Chia’s Facebook page to receive more market opinions now!
https://www.facebook.com/JayChia.Mentor/

 

The information contained in www.jay-chia.com is provided to you for general information/circulation only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

 

You should seek advice from a financial adviser regarding the suitability of the investment products mentioned, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to purchase the investment product. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest.

 

Any views, opinions, references or other statements or facts provided in this www.jay-chia.com are personal views. No liability is accepted for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on the information provided herein.

 

Straits Times Index to continue its consolidation mode.

Mon, 04/09/2018 - 05:13
Straits Times Index to continue its consolidation mode.

It was a volatile week for Straits Times Index as growing concerns on possible trade war to happen between US and China. Many have seen that trade war can affect the economic situation of the whole world and hence, reacted bearishly upon retaliation by the China officials. The strongest reaction happened on Wednesday where STI was seen breaking its key support level at 3350 level. However, the reaction was short lived as most of the losses were recovered immediately the next day. This wild swing had puzzled many traders which caused a much strong rebound last Friday. Instead of bearish closing for the week, STI was seen closing at 3442.5 level with 14.53pts gained for the week.

With such wild swing happening in the market, what should our actions be? It is the sign of a market bottom or is STI preparing itself for further downside?

Let’s read the chart for more information.

Trend: Possible sideways to uptrend, 20 wma flatten, MacD above 0.

Support: 3350 (50 week MA), 3270. 3190

Resistance: 3450 (20 week MA), 3530, 3630

Observations:

Candlestick – Short white candle. Possible Bullish hammer pattern.

MacD – Multiple Red. No bearish divergence.

RSI – At 52.8%. No bearish divergence. Bouncing off RSI support.

Stochastic – At 28.7%. No crossover formed

Bollinger Band – Tested lower band. Band contracting.

Conclusion:

The Straits Times Index had managed to test the key support level of 3350 level and broke this support level briefly. Thursday’s rebound had caught many bearish traders by surprise as there was no continuation of the breakdown of support. The bullish spike on last Friday could be due to short covering actions by traders whom are surprised by non-continuation of the downtrend. With the bullish hammer candle formation last week, it is clear that STI is still holding firmly at its key support of 3350 level. Downtrend formation did not confirm and now, there is a possibility of sideways formation. STI is clearly sitting on the fence currently.

 

The mid-term indicators did not have much change last week as the market manages to recover most of its bearish actions during the week. Underlying momentum can deem to be still bullish but it is now skewing more towards sideways kind of movements. Shorter-term momentum is on the bearish side currently. However, it is still unclear of whether STI will be reversing its shorter-term bearish momentum currently as there isn’t much change to the reading comparing to the previous week. Hence, in shorter-term, bearishness can still persist.

 

Despite the bullish closing last week, STI is still likely to continue to face bearish pressure this week based on the shorter-term indicators. It is still facing the immediate resistance level at 3450 level while it had clearly shown that the key support at 3350 level is holding firmly. With likelihood of bearishness this week, STI can continue to test its key support level at 3350 level. This firm support level will unlikely to break as it requires strong bearish conviction which will require the bargain hunters to stay out of the market. For this to happen there must be bearish news which will cause bargain hunters to think twice.

 

Bullish actions are not out of the league currently. With bullish underlying still intact, STI can also attempt to trade higher this week. In order for this scenario to happen, STI must first be able to break its resistance level of 3450. Breaking this resistance level will indicate further bullish attempts towards the next resistance level of 3530 level. Another indication after this breakout will be the indication of sideways movement. Therefore, STI will also be unlikely to breakout of 3530 resistance in this week.

 

In conclusion, the Straits Times Index continues to stay in its consolidative period despite its temporal breakdown of its support at 3350 level. 3350 support level will still remains as a key support level to confirm its downtrend movement. It is deems unlikely for STI to break this support level this week despite possibilities of further bearish movements to happen in this week. Upside will also be limited as STI is now facing resistance at 3450 level. It will unlikely to go beyond 3450 level this week. Therefore, STI will likely to trade in a tight range between 3350 – 3450 levels this week.

 

What to watch out for this week:

  1. Testing of 3350 support level.
  2. Breaking of 3350 support level.
  3. Testing of 3450 resistance level.

Trading strategy to adapt right now:

  • Long traders should stay sidelines unless clear uptrend is being formed.
  • Shortists to be prepared for crucial support level to break.

This market analysis is part of the premium services that is provided to Jay Chia’s clients. If you would like to find out on what other premium services Jay Chia provides, please visit www.Jay-Chia.com. You can also contact Jay Chia through the website.

Like Jay Chia’s Facebook page to receive more market opinions now!
https://www.facebook.com/JayChia.Mentor/

 

The information contained in www.jay-chia.com is provided to you for general information/circulation only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

 

You should seek advice from a financial adviser regarding the suitability of the investment products mentioned, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to purchase the investment product. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest.

 

Any views, opinions, references or other statements or facts provided in this www.jay-chia.com are personal views. No liability is accepted for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on the information provided herein.

 

Straits Times Index still consolidating

Mon, 04/02/2018 - 05:18
Straits Times Index still consolidating

It was a short week for the Straits Times Index as the Christian celebrated the Good Friday. Bearish sentiment was also cut short as the market continued to face uncertainty over the trade war issues. Volatility was seen during the week as market participants were flicking to and fro from bullish to bearish sentiment. The opening for the week is weak but it was being reversed the next day. A low of 3382 level was being formed during the week but rebound was quick. Flickering between 3382 – 3443 levels pretty much sums up the movements for the short week. A gain of 6.58pts was clocked during the week to close STI at 3427.97 level.

Has the bearishness ended after last week’s movements? Will bullish sentiment start to dominate the market for this week?

Let’s analyse STI’s chart for further details.

Trend: Possible sideways to uptrend, 20 wma flatten, MacD above 0.

Support: 3350 (50 week MA), 3270. 3190

Resistance: 3450 (20 week MA), 3530, 3630

Observations:

Candlestick – Short white candle. Possible Bullish counterattack pattern.

MacD – 2nd Red. No bearish divergence.

RSI – At 53%. No bearish divergence. Bouncing off RSI support.

Stochastic – At 35.8%. No crossover formed

Bollinger Band – Between mid band and lower band. Band contracting.

Conclusion:

The trading range of STI seems to be getting tighter and tighter over the weeks. With STI now trading below 20ma line, there is a risk of switching its current uptrend movement to downtrend movement. What is lacking right now is further downward movement that breaks the important support level of 3350. Last week’s movement did not bring STI to test this support level. This can mean that STI is still refusing to form a downtrend movement in its weekly chart. Consolidative movements are still in picture which leads to indecisiveness in the market. Indicators might prove some clues but it can also be misleading during consolidative period. Nevertheless, it is still necessary to look into it.

 

The mid-term indicators continued its bullish streak as MacD line continues to get lower over the period. RSI is still holding firmly at 50% support line. This is a good indication that the bullish underlying is still holding well despite the bearish market movements. Shorter-term indicators are still on the bearish side. Currently, there are no signs of reversal in the bearishness yet. Hence, the risk of further downside movement is still high in the current week.

 

With possibility of further bearishness in the short-term, it is important to look at the possible support levels that STI will be heading towards. Immediate support level stands at 3350 level. This is the key support level for STI as breaking it will indicate downtrend formation for STI. If this support level breaks, strong selling pressure should flood in. This flood can bring STI towards its next support level of 3270 or even towards a much lower support level of 3190. Going beyond 3190 support level is very unlikely for now.

 

As 3350 support level is a strong support level, it is quite unlikely for STI to break this week. Furthermore, with possible bullish reversal pattern being formed last week, STI might attempt to rebound this week. 3450 resistance level will probably prevent STI from heading higher this week. However, if this resistance level managed to break, it will mean that the bullish reversal pattern is being confirmed. Confirmation of bullish reversal pattern will allow STI to continue to trade higher and test its resistance level at 3530 level.

 

In conclusion, the Straits Times Index is still in the consolidative period despite it failing to hold at its support level at 3450. Key support level is at 3350 level as it will help to indicate whether STI will be forming downtrend formation. Underlying bullish momentum is still firm and this will likely prevent STI from moving into the bearish zone. Therefore, it is expected for STI to continue to trade in a sideway motion till a significant movement which will cause decisive movements in STI.

 

What to watch out for this week:

  1. Testing of 3350 support level.
  2. Breaking of 3350 support level.
  3. Testing of 3450 resistance level.

Trading strategy to adapt right now:

  • Long traders should stay sidelines unless clear uptrend is being formed.
  • Shortists to be prepared for crucial support level to break.

This market analysis is part of the premium services that is provided to Jay Chia’s clients. If you would like to find out on what other premium services Jay Chia provides, please visit www.Jay-Chia.com. You can also contact Jay Chia through the website.

Like Jay Chia’s Facebook page to receive more market opinions now!
https://www.facebook.com/JayChia.Mentor/

 

The information contained in www.jay-chia.com is provided to you for general information/circulation only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

 

You should seek advice from a financial adviser regarding the suitability of the investment products mentioned, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to purchase the investment product. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest.

 

Any views, opinions, references or other statements or facts provided in this www.jay-chia.com are personal views. No liability is accepted for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on the information provided herein.

 

Straits Times Index to consolidate this week

Mon, 03/19/2018 - 05:28
Straits Times Index to consolidate this week

The Straits Times Index had a bullish week last week but it failed to reach the recent high it had achieved last month. The start of the month was strong as STI managed to gapped up on Monday which brought strong bullish momentum to break its resistance at 3530 level. STI managed to sustain its resistance level till Wednesday. On Thursday, market participants were sceptical of the strength and started selling. This brought STI back below 3530 level. Further selling pressure pushed back to the gap level which it had created on Monday. Despite the bearish movements at the end of the week, STI was still able to maintain gains of 26.57pts. Closing at 3512.14 level.

With bullish movement last week, will STI be able to start off an uptrend movement?

Let’s look at STI’s chart.

Trend: Possible sideways to uptrend, 20 wma still up, MacD above 0.

Support: 3450 (20 week MA), 3350 (50 week MA), 3270

Resistance: 3530, 3630, 3700

Observations:

Candlestick – Black shooting star like candle.

MacD – Turned green. No bearish divergence.

RSI – At 56.7%. No bearish divergence. Bouncing off RSI support.

Stochastic – At 62.1%. No crossover formed

Bollinger Band – Between mid band and upper band. Band contracting.

Conclusion:

The rebound last week had helped to confirm the support at 3450 level. This strong support level had increase the chances of STI forming an uptrend formation. However, uptrend can only be confirmed if STI is able to form a higher high. 3574 level is the high that was formed during Feb. STI seems to be struggling to head higher last week despite the strong closing. Shooting star pattern could have been formed which indicates that the resistance at 3530 level is still firm. With a mix of bullish and bearish movement, it is hard to determine the direction that STI is opting for right now. Therefore, more affirmations are needed to identify the direction for STI currently.

 

The mid-term indicators continued to hover bullishly which will help STI to maintain its bullishness. No signs of weakness are seen currently in STI. Shorter-term indicators are now poising for the bullish side as Histogram start to trigger bullish reading. However, Stochastic is of worry as it might trigger a bearish cross if STI fails to main its bullishness this week. Overall, bullish momentum is likely to continue despite some concerns.

 

With bullish affirmation from the indicators, STI will probably attempt to head higher. Similar to last week, STI will likely to continue to attempt to break its resistance level at 3530 level. This resistance level will still be a tough level to break. Breaking this resistance level will require strong conviction by the market participants. If STI is to break this resistance level, it will then test its recent high of 3574 level which will help us to confirm whether STI will be going uptrend. Going beyond 3574 level will bring STI towards its next resistance level at 3630 level.

 

3530 resistance level can still be a tough resistance level to break. Furthermore, in the daily chart, STI’s gap support that was created last week is between 3495 – 3517 levels. This gap support can create a short-term downside pressure which was due to the “gap closing” effect. Hence, STI might have a possibility of testing 3517 level before it can head higher. Going below this level is unlikely for now as strong short-term support can be seen in the daily chart which show 2 MA line confluencing at 3505 level. However, if this level breaks, it will mean that STI is heading towards its support level of 3450 level to test it again.

 

In conclusion, the Straits Times Index is still sitting on the fence despite strong bullish movements last week. This will still need to trade above 3530 level before it can gain further upside momentum. 3547 recent high will continue to be the key level to confirm STI’s uptrend formation. However, STI will likely to attempt to cover its gap between 3495 – 3517 levels before it can attempt to break 3530 resistance level. Therefore, do expect STI to consolidate around 3500 level again before it can head higher.

 

What to watch out for this week:

  1. Testing of 3450 support level.
  2. Breaking of 3450 support level.
  3. Testing of 3530 resistance level.
  4. Testing of 3355 support level.

Trading strategy to adapt right now:

  • Long traders should stay sidelines unless clear uptrend is being formed.
  • Shortists should stay sidelines too.

This market analysis is part of the premium services that is provided to Jay Chia’s clients. If you would like to find out on what other premium services Jay Chia provides, please visit www.Jay-Chia.com. You can also contact Jay Chia through the website.

Like Jay Chia’s Facebook page to receive more market opinions now!
https://www.facebook.com/JayChia.Mentor/

 

The information contained in www.jay-chia.com is provided to you for general information/circulation only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

 

You should seek advice from a financial adviser regarding the suitability of the investment products mentioned, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to purchase the investment product. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest.

 

Any views, opinions, references or other statements or facts provided in this www.jay-chia.com are personal views. No liability is accepted for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on the information provided herein.

 

Straits Times Index will likely to rebound.

Mon, 03/12/2018 - 05:31
Straits Times Index will likely to rebound.

The Straits Times Index faced a volatile week last week as market participants were fighting to decide a market direction. The week first started with strong selling pressure which broke the support at 3450 level slightly. Instead of sliding lower the next day, STI opened with a gap up on the next day. This brought STI back above 3450 level. Talks of US tariffs continue to affect the market and brought STI back to test 3450 level again. However, this support level held well as buyers rushed to support the level. This volatile movements in the market have helped STI to recover 6.37pts; ending at 3485.57 level.

Support at 3450 level seems to be holding strongly. Will STI be rebounding from this support level and start to form a new uptrend formation?

Let’s analysis STI’s chart for the clues.

Trend: Possible sideways to uptrend, 20 wma still up, MacD above 0.

Support: 3450 (20 week MA), 3350 (50 week MA), 3270

Resistance: 3530, 3630, 3700

Observations:

Candlestick – Black hammer like candle.

MacD – Still Red. No bearish divergence.

RSI – At 52.8%. No bearish divergence. Back to RSI support.

Stochastic – At 62.8%. Bullish crossover confirmed.

Bollinger Band – At mid band. Band contracting.

Conclusion:

Straits Times Index managed to test the support level at 3450 level last week. This support level is being supported by the 20 week MA line too. Hence, it became a tougher support level to break. Hammer like candle also appeared which indicates that the support level is holding well. Therefore, it is conclusive to say that this support level is strong. With this strong support level holding, it will be hard for STI to confirm its lower high formation which can lead STI to form downtrend in its weekly chart. Therefore, there is a possibility for STI to revert back to its underlying bullish trend. More affirmation can come from the indicators.

 

The mid-term indicators are holding well last week as they are not showing strong bearish indication. RSI is holding firmly at its support line while MacD did not seems to be heading lower. Therefore, the bullish momentum is holding well. Shorter-term indicators continued to show conflicting readings. Histogram remains bearish while Stochastic continued to head higher. Mix readings can be an indication of sideways momentum.

 

The indicators are also not giving very definite directions at this point in time. Since STI is trading at a strong support level right now and together with underlying bullish momentum readings, we should be expecting rebound movements to happen. If rebound actions are to happen this week, STI will first face the resistance at 3530 level which it is unable to break for the past few weeks. Further bullish confirmation can only happen when STI is able to break 3530 resistance level. Breaking this resistance level will then lead STI towards its recent high of 3611 level.

 

However, if bullish rebound fails to appear, it will indicate that bearish momentum is still intact. This can mean that STI will be testing 3450 support level again. It might take a while for STI to break this strong support level. But if it breaks, it will give a clear indication that STI’s underlying bullish momentum will fail to hold. Change in underlying bullish momentum can lead to strong selling pressure which can push STI to its next support at 3355 level and beyond. If this happens, we should know how to react to it.

 

In conclusion, the Straits Times Index continues to sit on the fence currently. However, chance of rebound action is more likely to happen this week. Upside can be capped by resistance at 3530 level. But if it breaks this resistance level, it can only mean that STI will be reverting back to its bullish momentum for the weeks to come. Therefore, it is important to watch out for this resistance level this week. Otherwise, another key level to watch for will be the support level of 3450.

 

What to watch out for this week:

  1. Testing of 3450 support level.
  2. Breaking of 3450 support level.
  3. Testing of 3530 resistance level.
  4. Testing of 3355 support level.

Trading strategy to adapt right now:

  • Long traders should stay sidelines unless clear uptrend is being formed.
  • Shortists can take short positions if there is bearish confirmation.

This market analysis is part of the premium services that is provided to Jay Chia’s clients. If you would like to find out on what other premium services Jay Chia provides, please visit www.Jay-Chia.com. You can also contact Jay Chia through the website.

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The information contained in www.jay-chia.com is provided to you for general information/circulation only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

 

You should seek advice from a financial adviser regarding the suitability of the investment products mentioned, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to purchase the investment product. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest.

 

Any views, opinions, references or other statements or facts provided in this www.jay-chia.com are personal views. No liability is accepted for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on the information provided herein.

 

Straits Times Index sitting on the fence

Mon, 03/05/2018 - 05:00
Straits Times Index sitting on the fence

Last week, the Straits Times Index faced a streak of bearish actions as market participants were reacting US interest rate hike concern during the early week. Bullishness kicked off the week but it was unsustainable. Sellers dominated the market on Tuesday which prevented STI from reaching out for this year’s high at 3611 level. Powell, US Fed chief, had indicated the possibilities of interest rate. This comment was not well received by the market. To make the matter worse, US announced that they will implement import tariffs in steel and aluminium. This shook the market further and caused defensive cries throughout the world. No doubt, Singapore market reacted according and ended the week below 3530 resistance level. 54.02pts was lost during the week as the market closed at 3479.2 level.

Bearish reaction last week had caused traders to think twice of the possibilities of uptrend continuation. Is STI facing the risk of downtrend formation currently?

Let’s evaluate STI’s chart for clarity.

Trend: Possible sideways to downtrend, 20 wma still up, MacD above 0.

Support: 3450 (20 week MA), 3350, 3270 (50 week MA)

Resistance: 3530, 3630, 3700

Observations:

Candlestick – Dark cloud cover pattern.

MacD – Reversed back to red. No bearish divergence.

RSI – At 52.8%. No bearish divergence. Back to RSI support.

Stochastic – At 54.8%. Bullish crossover.

Bollinger Band – Heading back to mid band. Band contracting.

Conclusion:

Straits Times Index failed to stay above the resistance of 3530 level last week. This is an indication that the bullish momentum has failed to continue. This also indicates that the resistance at 3530 level is holding well and will probably prevent STI from going further. With bearish reversal pattern happening, downside pressure is likely to continue this week. However, this bearish reversal pattern requires further downside confirmation before we can conclude the likelihood of downside pressure. Therefore, more assurance should come from the indicators.

 

The mid-term indicators failed to show further strength in its underlying bullish momentum. It seems to be reverting back to its weakness as RSI returned to its support level. MacD failed to form a crossover and thus, strengthening of bullish momentum is unlikely now. Shorter-term indicators are currently giving mixed signals. Histogram failed to confirm its bullish signal while Stochastic just triggered its bullish signal. It is currently hard to determine the direction that STI will take based on the indicators currently.

 

With STI currently sitting on the fence, it will be more prudent to be cautious. If bearishness is to persist this week, it will mean that STI will be testing its support level at 3450 level. This support level is an important support level as it confluences with the 20 week MA line. Breaking this support level will confirm STI’s bearishness and can lead to strong selling pressures. Therefore, it is important to watch out for this support level this week. If this support level fails to hold, it will also confirm STI’s lower high formation. Lower high formation will indicate that STI is forming downtrend. Downtrend formation can lead STI towards not only its recent low support of 3355 level, it can also lead STI towards a much lower support level at 3270 level. Hence, 3450 support level is crucial.

 

If STI decides to hold at its support level of 3450 and rebounds, it will mean that the underlying bullish strength is still intact. Staying intact will increase the odds of uptrend formation. Holding at this support level will probably lead to consolidation movements at 3450 level before it can attempt to head higher. The key resistance will still be at 3530 level. Only by breaking this resistance level can indicate further upside for STI currently.

 

In conclusion, the Straits Times Index is now sitting on the fence. Bearish movements are likely to continue this week but we have to watch for this crucial support level at 3450. Breaking this support level can lead to further and stronger downside movement in STI. Otherwise, we can expect STI to hover between 3450 – 3530 levels during this week. Going above this range will require an abrupt change in market sentiment towards positiveness.

 

What to watch out for this week:

  1. Testing of 3450 support level.
  2. Breaking of 3450 support level.
  3. Testing of 3530 resistance level.
  4. Testing of 3355 support level.

Trading strategy to adapt right now:

  • Long traders should stay sidelines unless clear uptrend is being formed.
  • Shortists can take short positions if there is bearish confirmation.

This market analysis is part of the premium services that is provided to Jay Chia’s clients. If you would like to find out on what other premium services Jay Chia provides, please visit www.Jay-Chia.com. You can also contact Jay Chia through the website.

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The information contained in www.jay-chia.com is provided to you for general information/circulation only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

 

You should seek advice from a financial adviser regarding the suitability of the investment products mentioned, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to purchase the investment product. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest.

 

Any views, opinions, references or other statements or facts provided in this www.jay-chia.com are personal views. No liability is accepted for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on the information provided herein.

 

Straits Times Index starting its bullish streak

Mon, 02/26/2018 - 04:41
Straits Times Index starting its bullish streak

The Straits Times Index managed to perform a rally last week as it confirmed its rebound from the support of 3350 level. This bullish action happened after breaking its resistance at 3450 level; which leads to confirmation of the bullish reversal pattern. Looking into the daily market action, it seems that there was strong tussle between the bullish and bear as 2 days of the week ended in red. Despite the tussle, the bullish buyers eventually managed to maintain the price and helped STI to end the week high. A total of 89.71pts was gained which lifted STI to close at 3533.22 level.

With such strong bullish closing last week, many are questioning on whether this bullish strength will continue. Based on my previous week’s review, there is also a possibility of lower high formation. So this week’s movement in the market will be the key.

Let’s look into STI’s chart again to identify the possibilities.

Trend: Possible sideways to downtrend, 20 wma still up, MacD above 0.

Support: 3450 (20 week MA), 3350, 3270 (50 week MA)

Resistance: 3530, 3630, 3700

Observations:

Candlestick – Long white candle.

MacD – Histogram turned green. No bearish divergence.

RSI – At 61.5%. No bearish divergence. Bounced off RSI support.

Stochastic – At 40.9%. Possible bullish crossover.

Bollinger Band – Bounced off mid band. Band contracting.

Conclusion:

Straits Times Index managed to confirm its bullish harami pattern last week by breaking 3450 resistance level. This is still inline of the expectations I had made during the previous week. However, what is interesting is that it just took a week to reach the resistance level of 3530 level. Looking closely, it seems that STI has also broke its resistance level at 3530 level which confluences with the gap resistance between 3491 – 3522 levels. It can be hard to determine if the breakout is sustainable as it only close 3 pts higher than the resistance level of 3530 level. The only assurance is the volume which is higher than average. Indicators will also give further hint on this bullish strength.

 

The mid-term indicators are starting to show signs of strengthening of the bullish momentum. RSI managed to bounce of its support gracefully and this can lead to further bullish momentum. MacD is not heading lower anymore and this can lead to further upside. The shorter-term indicators are also skewing towards the bullish side currently. Histogram managed to trigger a bullish signal which can help to sustain its current bullish momentum. Stochastic has yet to turn but if bullishness continues, it is certain to see Stochastic triggering a bullish crossover.

 

Confirmation of the bullish harami pattern had attracted a lot of buyers into the market. This bullish momentum seems to be sustainable after analysing the indicators. Further upside movement can happen this week where STI might not be running the risk of lower high formation which can lead to downtrend formation. However, this does not mean that STI will be continuing its uptrend formation. There is still a risk of sideway formation. The uptrend’s high is at 3611 level where STI has yet to break. This high can create the upper limit for STI to form a sideways trend between 3350 – 3610 levels. Therefore, 3610 level will be a key resistance level to watch currently. If STI is able to break 3610 level, it will help to conclude that STI is continuing its uptrend movement. Otherwise, sideways risk is still there.

 

Despite the bullish anticipation, bearish risk is still lurking as lower high formation can still form. If STI is unable to sustain its gains this week, bearish strength can still take control. The hint of bearishness will be the resistance level of 3530 level. If STI is unable to continue to hold above this resistance level, bearish reversal can happen. If this happens, lower high formation can form which can lead to downtrend formation. This is when STI will retest 3450 or even 3350 support levels again.

 

In conclusion, the Straits Times Index has good chance of trading higher this week. Possibilities of downtrend formation has lowered drastically but it does not mean that uptrend will continue. The last hurdle for STI to clear will be the uptrend’s high at around 3610 level. Breaking this high will only mean continuation of uptrend formation. But if STI is unable to sustain above 3530 level this week, risk of bearish movement will be reverted.

 

What to watch out for this week:

  1. Testing of 3610 high.
  2. Breaking of 3610 high.
  3. Failure to hold above 3450 level.

Trading strategy to adapt right now:

  • Long traders should stay sidelines unless clear uptrend is being formed.
  • Shortists can take short positions if 3530 resistance level holds well.

This market analysis is part of the premium services that is provided to Jay Chia’s clients. If you would like to find out on what other premium services Jay Chia provides, please visit www.Jay-Chia.com. You can also contact Jay Chia through the website.

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The information contained in www.jay-chia.com is provided to you for general information/circulation only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

 

You should seek advice from a financial adviser regarding the suitability of the investment products mentioned, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to purchase the investment product. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest.

 

Any views, opinions, references or other statements or facts provided in this www.jay-chia.com are personal views. No liability is accepted for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on the information provided herein.

 

Straits Times Index might attempt a rebound

Mon, 02/19/2018 - 05:43
Straits Times Index might attempt a rebound

Happy Lunar New Year to everyone and I wish everyone will Huat Huat Huat this year!

Last week, Straits Times Index did not show a sea of red as an auspicious symbol to start the Lunar New Year. Market participants are excited by the cheaper valuation in the market and decided to buy into the market. In the shot 4 days week, STI was able to start the week bullishly. However, the bullish start was not easy as it continues to face selling pressure which caps STI’s upside. It is clear to see the strength of the bears in the market on Wednesday as STI was unable to sustain its strong opening during the day. But STI still managed to close the week with 66.27pts up as sellers decided to take a earlier break at the end of the week on Thursday. Therefore, STI is able to end the short week at 3443.51 level.

On Monday, market’s eyes will be on Singapore’s budget announcement as it can have an impact on businesses. Positive vibes were speculated in the market. Will this help STI to continue its rebound this week?

Let’s look at STI’s chart for a clearer understanding.

Trend: Possible sideways to downtrend, 20 wma still up, MacD above 0.

Support: 3350, 3270 (50 week MA), 3190

Resistance: 3450 (20 week MA), 3530, 3630

Observations:

Candlestick – Bullish harami pattern.

Histogram – 3Rs. No bearish divergence. Bearish crossover formed.

RSI – At 51.9%. No Bearish divergence. Bouncing off RSI support.

Stochastic – At 37.4%. Bearish crossover already formed.

Bollinger Band – Tested mid band. Band contracting.

Conclusion:

Straits Times Index had tested 3350 support level on the previous week which requires a rebound to confirm the support. Last week’s market action have helped STI to confirm this support level as bullish harami pattern was formed. With support holding, STI can attempt to rebound for this week as long as there is confirmation for the bullish harami pattern. In order for the rebound to be sustainable, the indicators must also be ready for the rebound momentum.

 

The mid-term indicators are still showing signs of weakness in the bullish readings. MacD still furthers its bearish readings which can continue to produce downward pressure on STI. However, RSI support seems to be holding well as it rebounded last week. Therefore, STI is in a period of tussle between the bulls and bears. Shorter-term indicators are showing bearish readings currently. This can create further bearish actions this week despite a bullish closing last week. Hence, bearishness will likely to continue to happen this week.

 

Based on the indicators readings, it will be harder for STI to confirm its bullish harami pattern. In order for this bullish harami pattern to be confirmed, STI must first be able to clear the hurdle of resistance level. STI is currently close to the resistance level of 3450. If STI is able to break this resistance level, further bullish movement will then be able to occur. After which, further upside attempts will help STI to reach its next resistance level of 3530 level. 3530 resistance level will be a strong resistance level which will prevent STI from going higher. This resistance level will also be a good level for STI to form its lower high formation. Therefore, it is an important level to watch for downtrend formation.

 

Despite rebound hopes, bearish indication is high currently. Hence, I will not be surprise that the resistance at 3450 level holds firmly. If this resistance level holds firmly, STI will be returning back to its support level at 3350 level to test it. There will also be a risk of breaking this support level. Once this support level breaks, downtrend formation will be confirmed and this will lead STI to seek a much lower support level at 3270 level.

 

In conclusion, the Straits Times Index is now sitting on the fence. There is opportunity for STI to rebound this week but it will likely to be capped at 3530 resistance level. 3530 level is a key resistance level as it will be a good level for STI to form its possible downtrend formation. Another key level to watch out this week will be the support at 3350 level. Breaking this support level will indicate further downside towards 3270 level.

 

What to watch out for this week:

  1. Breaking of 3450 resistance level.
  2. Testing of 3350 support level.
  3. Testing of 3530 resistance level.
  4. Testing of 3270 support level.

 Trading strategy to adapt right now:

  • Long traders should stay sidelines despite rebound opportunity.
  • Shortists can take short positions when rebound hits resistance level.

This market analysis is part of the premium services that is provided to Jay Chia’s clients. If you would like to find out on what other premium services Jay Chia provides, please visit www.Jay-Chia.com. You can also contact Jay Chia through the website.

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The information contained in www.jay-chia.com is provided to you for general information/circulation only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

 

You should seek advice from a financial adviser regarding the suitability of the investment products mentioned, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to purchase the investment product. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest.

 

Any views, opinions, references or other statements or facts provided in this www.jay-chia.com are personal views. No liability is accepted for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on the information provided herein.

 

Straits Times Index in the midst of correction

Mon, 02/12/2018 - 05:17
Straits Times Index in the midst of correction

Strong selling pressure seeped into the Straits Times Index as the stock markets of the whole world went into selling frenzy. The selling sentiment started in US market first which created a domino effect to other leading markets. Reports of corrections happening became real as profit takers scrambled to exit the market quickly after a long streak of bullish movements since last year. Rebound attempts that happened during the week became opportunities for sellers to exit the market. This bearish spiral caused STI to lose a total of 152.58pts for the week; ending at 3377.24 level.

US market managed to close positively last Friday. This made many wondered whether it signifies the end of the bearish pressure. Is it time to buy into the market?

Let’s analyse STI’s chart to give us a better perspective.

Trend: Possible sideways to downtrend, 20 wma still up, MacD above 0.

Support: 3350, 3270 (50 week MA), 3190

Resistance: 3450 (20 week MA), 3530, 3630

Observations:

Candlestick – Long black candle with longer lower shadow.

Histogram – Confirmed bearish signal. No bearish divergence. Bearish crossover formed.

RSI – At 49.6%. No Bearish divergence. Testing RSI support.

Stochastic – At 51.9%. Bearish crossover already formed.

Bollinger Band – Tested mid band. Band contracting.

Conclusion:

The bearish engulfing pattern of the previous week had been confirmed by the bearish candle last week. Gap down action was seen and this marks clearly that the uptrend momentum of STI has been compromised. The key now is to find out whether STI will be forming a downtrend or a sideways trend. Hence, it is important to identify the underlying momentum STI is currently at and at the same time, to look at the key levels that STI will be forming its support or resistance.

 

The mid-term indicators are now starting to lose its bullish momentum. MacD is still on the bullish side but it had triggered a bearish crossover. This can lead to reversal of the bullish momentum to be a bullish one. RSI is now around the RSI support level. If the bullish momentum attempts to hold, RSI will likely to be hovering around the 50% level. This might help to trigger possibilities of rebound this week. Shorter-term indicators have confirmed their bearish signals and are likely to continue to trend bearishly. Hence, this will put a downward pressure in STI for this week.

 

With RSI showing possibilities of rebound this week, we can start to look at this possibility. Immediate support that STI is facing right now is at 3350 level. This support level had shown its strength last week as the bearish candle formed longer lower shadow which indicates support. Therefore, this support level can be a good level for STI to setup a rebound for this week. However, this does not mean that the rebound will lead to a continuation in uptrend. This rebound will face limited upside as the bullish momentum is now compromised. Hence, resistance levels will likely to hold more firmly this time round. Immediate resistance stands at 3450 level which will be the first level for STI to overcome if it rebounds. A much stronger resistance level is formed at 3530 level which confluences with the gap down resistance. Therefore, STI’s max upside will be at 3530 level.

 

Although, there is rebound chance this week, it does not mean that it will happen. Rebound will not happen if STI is unable to hold its current support level. Once STI breaks 3350 support level, it will lead to further downside. Breaking 3350 support level also indicates a breakdown of higher low of the uptrend channel. Breaking higher low support level will confirm the formation of downtrend which can cause a stronger downside movement. Next support level that STI can test will be the 50 week MA line at around 3300 level. This will likely to help to limit STI’s downside for now.

 

In conclusion, the Straits Times Index might take the lead from US market to attempt to rebound this week. 3350 support level must hold before it is able to trigger a rebound. Failure to hold will confirm a downtrend movement which can lead STI to further downside pressure. If a rebound happens, its upside will be limited by resistance at 3450 or in the best case scenario, 3530 level. Going beyond 3530 resistance level is unlikely for now as the bearish momentum will likely to persist for a period of time.

 

What to watch out for this week:

  1. Breaking of 3350 support level.
  2. Testing of 3300 support level.
  3. Testing of 3450 resistance level.
  4. Testing of 3530 resistance level.

 Trading strategy to adapt right now:

  • Long traders should stay sidelines despite rebound opportunity.
  • Shortists can take short positions when rebound hits resistance level.

This market analysis is part of the premium services that is provided to Jay Chia’s clients. If you would like to find out on what other premium services Jay Chia provides, please visit www.Jay-Chia.com. You can also contact Jay Chia through the website.

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The information contained in www.jay-chia.com is provided to you for general information/circulation only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

 

You should seek advice from a financial adviser regarding the suitability of the investment products mentioned, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to purchase the investment product. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest.

 

Any views, opinions, references or other statements or facts provided in this www.jay-chia.com are personal views. No liability is accepted for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on the information provided herein.

 

Straits Times Index poised for retracement movements

Mon, 02/05/2018 - 05:01
Straits Times Index poised for retracement movements

The long awaited bearish sentiment started to appear in the Straits Times Index last week after 5 weeks of rally. STI attempted to trade higher during the early week but failed to sustain the bullishness. Selling pressure was triggered by the bearishness in the US market. There was no strong reason for the market to start buying and hence, sellers dominated the market last week. Due to this, the momentum to help STI to reach 3630 resistance level has stopped and reversed. A total of 37.32pts was lost during the week as STI close at 3539.82 level.

Has the bullish momentum in STI truly ended? Will this bearish action be a good opportunity for us to start buying?

Let’s read STI’s chart to understand the situation.

Trend: Uptrend formation, 20 wma up, MacD above 0.

Support: 3530 , 3450 (20 week MA), 3355

Resistance: 3630, 3700

Observations:

Candlestick – Bearish engulfing pattern.

Histogram – Just turned red, bearish signal. No bearish divergence. No bearish crossover yet.

RSI – At 66.7%. No Bearish divergence. Just exited overbought.

Stochastic – At 78.8%. Bearish crossover. Exiting overbought.

Bollinger Band – Tested upper band. Band contracting.

Conclusion:

STI’s bullish attempt is now coming to an end despite its attempt to reach the resistance level last week. Bearish reversal signal was being triggered last week. Bearish engulfing pattern is a strong reversal pattern which can create a strong selling pressure if the pattern is being confirmed with another bearish closing. Therefore the market behaviour for this week is crucial as this will confirm further bearishness in the market. Indicators readings will help us further confirm whether the bearishness in the market will seep in deeper.

 

The mid-term indicators are still running on the bullish momentum despite the bearish movements last week. One bearish movement is not able to have a large impact on the mid-term momentum. RSI is now peeking out of the overbought region. This means that it had triggered a shorter-term bearishness which can lead RSI towards its 50% level. Despite the possible bearishness, the mid-term momentum is still bullish. Shorter-term indicators are now turning towards the bearish side. Bearish signals are being triggered in both Histogram and Stochastic. This bearish trigger indicates a possible further downside pressure for the index. What is lacking right now is a bearish confirmation.

 

Therefore, it is clear that STI will likely to face further bearish movement for this week. However, bearish confirmation is needed before we can conclude that the bearish movement will be sustainable. To confirm the bearishness, we must identify a level to trigger the confirmation. The immediate support level that STI is being supported right now is at 3530 level. STI seems to have broken this support level slightly last Friday. If STI is to continue to trade below this support level this week, it will confirm the bearish momentum in STI. So the key to bearishness will be whether STI will be able to recover above 3530 level this week.

 

If bearishness starts during early this week, it will be highly probable that STI will face further selling pressure. The next support level stands at 3450 level and STI will likely to attempt to test this support level. As 20ma week MA line is close to this support level, it will likely to prevent STI from falling beyond this support level. But if the bearishness is very strong, STI might even attempt to test a much deeper support level at 3355 level.

 

In conclusion, the Straits Times Index will likely to face bearish pressure this week if the support level at 3530 level is compromised. If bearish movement is kick starting this week, further bearish pressure is expected to happen during the week which can push STI to its next support level at 3450 level. Breaking below 3450 support level is unlikely to happen for now as the support at this level will likely to be strong. Despite the bearishness, the underlying bullish trend is still intact as such bearish action can just turn out to be a mere retracement action.

 

What to watch out for this week:

1)      Testing of 3530 support level.

2)      Breaking of 3530 support level.

3)      Testing of 3450 support level.

 Trading strategy to adapt right now:

-        Long traders should stay sidelines to wait for a rebound opportunity.

-        Shortists can look towards short positions for quick retracement profit.

This market analysis is part of the premium services that is provided to Jay Chia’s clients. If you would like to find out on what other premium services Jay Chia provides, please visit www.Jay-Chia.com. You can also contact Jay Chia through the website.

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The information contained in www.jay-chia.com is provided to you for general information/circulation only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

 

You should seek advice from a financial adviser regarding the suitability of the investment products mentioned, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to purchase the investment product. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest.

 

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Straits Times Index's upside getting limited.

Mon, 01/29/2018 - 05:20
Straits Times Index's upside getting limited.

The bullish sentiment remained firm last week. The bullish sentiment was mainly seen during the early week which pushed STI to as high as 3611 level. This bullish sentiment came to an end last Thursday as market participants preferred to stay out of the market. Strong profit taking pressure returned most of the gains of the week and this sentiment ended the week at 3567.14 level. This translates to a gain of only 16.78pts despite a strong start.

Will the bullish movements for the past few weeks come to an end? How will the month of January conclude?

Let’s review STI’s chart.

Trend: Uptrend formation, 20 wma turning up, MacD above 0.

Support: 3530, 3450, 3355 (20 week MA)

Resistance: 3630, 3700

Observations:

Candlestick – White shooting star.

Histogram – 4 Gs. No bearish divergence. No bearish crossover.

RSI – At 75.9%. No Bearish divergence. Overbought.

Stochastic – At 89.6%. No bearish crossover yet. Overbought.

Bollinger Band – Testing upper band. Band expanding.

Conclusion:

Still within bullish expectation, STI is able to get much closer to the resistance level of 3630 level this time round. It seems that there is a psychological barrier at 3600 level as the market is unable to maintain above 3600 level last week. This possible resistance can be reinforced by the bearish shooting star pattern that it had formed last week. However, this bearish candle might not be enough to trigger retracement action as the candle closed with a white candle. Bullish sentiment might still remain. Therefore, there is a need for further readings from the indicators.

 

The mid-term indicators remain bullish despite possible bearishness. This explains the underlying bullish strength that STI is facing currently. However, overbought reading in RSI seems to be capping STI’s upside currently. Hence, a lack of strong bullish momentum is seen last week. Shorter-term indicators are also in the bullish region. This means that the bullish sentiment is unlikely to be affected by the selling pressure for the past few days. Further bullishness can occur but yet again, overbought situation will cap STI’s upside.

 

Therefore, despite the gains are being return at the end of last week, STI’s bullish momentum is likely to continue this week. Attempts to trade higher can continue to occur but it will unlikely to be strong as profit takers are likely to be active in the market. 3630 resistance level can still be challenged but it will only happen if STI is able to break the psychological level of 3600. This psychological resistance level will be the key watch out point this week.

 

Overbought readings have been showing for the past few weeks and this can attract profit taking pressures into the market. If the bullishness is unable to sustain this week, it will mean that resistance level is formed and retracement action will seep in. Support level now stands at 3530 level and it had been holding well. This support level can be retested due to profit taking action. But if it fails to hold, deeper retracement can reach the next support level of 3450 level.

 

In conclusion, the Straits Times Index might continue to challenge the upside currently but it might face psychological resistance at 3600 before attempting to challenge 3630 level. Profit taking sentiment is set to enter the market. This will prevent STI from heading higher. If profit taking strength is strong, STI might be forced to test its resistance turn support level at 3530 level. But if this support level breaks, do expect STI to head lower towards 3450 level.

 

What to watch out for this week:

1)      Testing 3600 resistance level.

2)      Testing of 3530 support level.

3)      Breaking of 3530 support level.

4)      Testing of 3450 support level.

 Trading strategy to adapt right now:

-        Long traders can start looking to take partial profits off the market.

-        Shortists should wait for bearish signals at resistance level to be confirmed.

This market analysis is part of the premium services that is provided to Jay Chia’s clients. If you would like to find out on what other premium services Jay Chia provides, please visit www.Jay-Chia.com. You can also contact Jay Chia through the website.

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The information contained in www.jay-chia.com is provided to you for general information/circulation only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

 

You should seek advice from a financial adviser regarding the suitability of the investment products mentioned, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to purchase the investment product. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest.

 

Any views, opinions, references or other statements or facts provided in this www.jay-chia.com are personal views. No liability is accepted for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on the information provided herein.

Straits Times Index to trade in tight range

Mon, 01/22/2018 - 05:16
Straits Times Index to trade in tight range

Last week was a week of tussle between the bulls and the bears. The Straits Times Index managed to trade above 3530 level by going beyond this level at the start of the week. Bullish efforts were quickly being countered by the selling pressure during mid week as market participants were unable to find new reasons to support the market. 3530 level was compromised on Thursday but bullish buyers supported the market again on Friday. The fight between the bullish and bearish players had ended at 3550.36 level. A total of 29.8pts were gain during the week.

With uncertainty sipping into the market currently, what should we expect the market to happen this week?

Let’s look into the chart.

Trend: Uptrend formation, 20 wma turning up, MacD above 0.

Support: 3530, 3450, 3355 (20 week MA)

Resistance: 3630, 3700

Observations:

Candlestick – Short white candle with shadows.

Histogram – 3 Gs. No bearish divergence. No bearish crossover.

RSI – At 76.1%. No Bearish divergence. Overbought.

Stochastic – At 92.2%. No bearish crossover yet.

Bollinger Band – Testing upper band. Band expanding.

Conclusion:

As expected, the bullishness continued last week as the bullish momentum is still not showing any signs of weakness. The candlestick formed last week shows that the market is starting to show uncertainty in the market. However, this does not mean that the market will start to face bearish sentiment. Bullishness can still continue as traded volume last week is likely to help to sustain the breakout of 3530 resistance level. Clues from indicators are likely to give us further assurance of the direction for this week.

 

The mid-term indicators are not showing signs of fatigue currently. MacD is still continuing to trend higher while RSI maintains its position at the overbought zone. Shorter-term indicators are also bullish currently. Both Stochastic and Histogram are continuing its bullish streak and they will likely to continue. However, Stochastic is now in the overbought zone which will further increase the odds of retracement actions. But for now, bullish momentum will likely to continue further this week.

 

Bullish expectation will likely to continue this week. 3630 resistance level is expected to be the target for STI to reach. However, with overbought indications starting to appear, there is a possibility that STI might not be able to reach this resistance level. The likely possibility for this week is a consolidation movement to happen at the breakout level of 3530. Upside can also be capped at minor resistance at 3550 level. Therefore, sideways movements can be expected to happen between 3530 – 3550 levels this week. Upside will continue once STI is able to go beyond 3550 level.

 

Downside risk is still high right now as overbought readings are both seen in Stochastic and RSI. Therefore, it is important to prepare for downside risk too. If STI is unable to hold above 3530 level this week, it is subjected to further selling pressure. If this happens, it will be seeking its next support at 3450 level before it can start to conquer new highs.

 

In conclusion, the Straits Times Index might start to face consolidation movements this week. It can be trading between 3530 – 3550 levels this week before it attempts to head higher towards 3630 resistance level. However, there is also risk of further selling pressure. If STI is to break 3530 support level this week, it will be indicating a deeper retracement towards 3450 level. Hence, this week can be an important week for STI.

 

What to watch out for this week:

1)      Testing of 3530 support level.

2)      Breaking of 3530 support level.

3)      Testing of 3450 support level.

 Trading strategy to adapt right now:

-        Long traders can hold on to their long positions.

-        Shortists should wait for bearish signals at resistance level to be confirmed.

This market analysis is part of the premium services that is provided to Jay Chia’s clients. If you would like to find out on what other premium services Jay Chia provides, please visit www.Jay-Chia.com. You can also contact Jay Chia through the website.

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The information contained in www.jay-chia.com is provided to you for general information/circulation only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

 

You should seek advice from a financial adviser regarding the suitability of the investment products mentioned, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to purchase the investment product. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest.

 

Any views, opinions, references or other statements or facts provided in this www.jay-chia.com are personal views. No liability is accepted for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on the information provided herein.

Straits Times Index facing resistance at 3530 level.

Mon, 01/15/2018 - 05:16
Straits Times Index facing resistance at 3530 level.

The Straits Times Index continued its bullish streak last week. Buyers were positive of the upside and were seen buying during the early week. This leads STI to reach its resistance level at 3530 level. However, the resistance level at 3530 level seems to be firm. This prevented STI from going higher as profit takers were seen dominating the market. The profit taking actions were not strong enough to push STI lower. The market continued to stay close to its resistance level which helped to maintain the early gains during the week. Hence, STI was able to close at 3520.56 level with 31.11pts up for the week.

Since STI is now trading at resistance level, the key question will be whether STI will be able to break this resistance level.

Let’s get some clues from the chart.

Trend: Uptrend formation, 20 wma turning up, MacD above 0.

Support: 3450, 3355 (20 week MA), 3270 (50 week MA)

Resistance: 3530, 3630, 3700

Observations:

Candlestick – Short white candle.

Histogram – 2 Gs. No bearish divergence. No bearish crossover.

RSI – At 76%. No Bearish divergence. Overbought.

Stochastic – At 71.8%. No bearish crossover yet.

Bollinger Band – Testing upper band. Band expanding.

Conclusion:

Current movement of STI is still within my expectation as it has yet to go beyond 3530 resistance level yet. Short white candle tested the resistance level indicating that the market is cautiously testing the resistance level. There were no attempts to break this resistance level yet as the candle did not shows long upper shadow. Therefore, it seems that this resistance level is preventing the upside for now. The ability to break this resistance level will depend on the momentum that STI is currently trading in. Reading off the indicators will help.

 

The mid-term indicators are still trending in the bullish mode. MacD is still not showing any signs of fatigue and will likely to continue to trend higher. However, RSI is still in overbought zone but it is started to trend slightly lower yesterday. Shorter-term indicators are also showing bullish readings. Both Histogram and Stochastic are in bullish momentum and are unlikely to trigger bearish signal for now. Hence, bullishness is expected to continue while overbought is seen in the mid-term momentum.

 

Since bullishness is being maintained, STI will likely to continue to test the resistance level of 3530. Breaking this resistance level is possible this week despite the cautiousness last week. Once this resistance level is broken, STI will be approaching its next resistance level at 3630 level. So, it is important to watch out for the breakout that might happen this week.

 

However, if STI failed to break this resistance level this week, it will indicate that this resistance level is strong. STI will either choose to hover close to 3530 resistance level or starts to trade lower. If STI is to start trading lower than 3494 level, it will indicate bearishness and deeper retracement action will likely to happen. Retracement target will be its resistance turned support level at 3450. This support level will help STI to prepare for stronger bullish momentum going forward.

 

In conclusion, the bullish momentum will be continuing this week despite its cautiousness last week. Breaking out of 3530 resistance level can happen this week. When this happens, STI will be approaching 3630 resistance level. However, if breakout fails to happen, profit taking pressure will set in which can cause STI to hover close to 3530 level or retrace towards 3450 level.

 

What to watch out for this week:

1)      Breaking of 3530 resistance level.

2)      Testing of 3630 resistance level.

3)      Testing of 3450 support level.

 Trading strategy to adapt right now:

-        Long traders can hold on to their long positions.

-        Shortists should wait for resistance level to be confirmed.

This market analysis is part of the premium services that is provided to Jay Chia’s clients. If you would like to find out on what other premium services Jay Chia provides, please visit www.Jay-Chia.com. You can also contact Jay Chia through the website.

Like Jay Chia’s Facebook page to receive more market opinions now!
https://www.facebook.com/JayChia.Mentor/

 

The information contained in www.jay-chia.com is provided to you for general information/circulation only and is not intended to nor will it create/induce the creation of any binding legal relations. The information or opinions provided do not constitute investment advice, a recommendation, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person or group of persons acting on this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise.

 

You should seek advice from a financial adviser regarding the suitability of the investment products mentioned, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to purchase the investment product. In the event that you choose not to obtain advice from a financial adviser, you should assess and consider whether the investment product is suitable for you before proceeding to invest.