8:56 PM
Admin
Market Review:
Singapore's benchmark Straits Times Index inched up 0.3% to 3,219.13, snapping 2 days of straight losses after Federal Reserve Chairman Ben Bernanke's comments soothed anxiety over imminent withdrawal of the central bank's monetary stimulus.
STI opens with slid gap @ 3217.34, then traded higher and made day high @ 3226.94 and faced resistance at that level and made day low @ 3210.81. Finally closed @ 3218.20 near to opening level with gain of 9.87 points up by 0.31%.
Some 3.37 billion shares, valued at S$1.10 billion were traded. Gainers numbered 216 while Losers numbered 210.
Market forecast:
Today STI snapping its 4 days down trend and closed in green, also maintain the support level of 3210.
STI formed a candlestick pattern called “Bullish Harami Cross”; this is a major bullish reversal pattern, which is even more significant than a regular Bullish Harami. The outline again looks like a pregnant woman, as with the Bullish Harami Pattern. However, now the baby is a Doji. Basically, the pattern is characterized by a black body followed by a Doji that is inside the range of the prior black body.
A bearish mood prevails in the market, and a downtrend is in progress. The first day’s candlestick is a black body, which further supports bearishness. However the next day, prices open higher than the close, or at the close of the preceding day. The short traders are alarmed which leads to the covering of many short positions, causing the price to rise further. Moreover, the day closes at the opening price, showing lack of decision among traders. The increasing level of indecision and uncertainty amplifies the likelihood of a trend change and cause a reversal.
So as per the pattern if STI crossed its 3200 mark then we can see more down side move in the Index, for upward move it has to maintain above 3250 mark.
Support:
STI having immediate support @ 3200 level and below this level it can take support @3185-3160 will be the support zone for STI.
Resistance:
STI having immediate Resistance @ 3255 and above this level it may take resistance @ 3285-3310 levels.
Technical indicators:
Technical indicators MACD turn to bearish , its 14-day RSI is in recovering mode and closed @ 53.08 and CCI recovers again and trading @ 81.41
Posts
