Thursday, February 17, 2011

Shanghai & Shenzhen Update

Reaching Resistance Zones

Last update on the Chinese indices noted bullish breakouts, and i took positions short-term. Both indices are now reaching resistance zones, and may be vulnerable to a pullback here. Support for the SZSE is around 1230. A breakout above these zones will test recent highs. Note the increase in volume with the price. Will post bigger-picture chart when time permits.

All the best!

Shanghai Composite

 Shenzhen Composite

"Elliott Wave Principle": FREE online edition

Bob Prechter is releasing the online edition of Elliott Wave Principle: Key to Market Behavior, FREE to the public. This brilliant book is my trading bible, and i would strongly recommend anyone interested in trading or market psychology to have a go at this. Trading is an art (not a science). The general principles of Elliott Wave Theory are immensly beneficial to understading market moods, as well as in shaping a trading framework, in my humble opinion.

Click here to access the resource. You may have to sign up for a Club ID, which is free. I trust you will find this useful :)

Tuesday, February 15, 2011

Singapore Exchange: Decision Time

SGX has been drifting in a range since the merger-euporia-rally, and the high volume fall. From the arithmetic chart below, it is evident that a move eitherways in required. Currently sitting on previous support of $8.25 and the rising trendline, with the 200-day MA not far below, chances of a bounce here outweigh a decline - by a bit. I may go long here, with a suitable stop.

Upside targets: $8.70 initially, followed by $9.20
Downside support: 200-day MA initially, followed by $7.70

Remaining bearish on the long-term picture as well as the merger. All the best!