Tuesday, March 8, 2011

Straits Times Index: Overhead Resistance

Last post on the STI - Dire Straits - identified a break below 3120, and called for further declines. After reaching a low of 2970, there was a nice rebound. The same 3120 overhead is now serious resistance. Expecting price to correct with support at 3050 zone. A possible inverse head and shoulders reversal pattern is illustrated on the chart. An eventual break above 3120 will make this an A-B-C style correction implying higher prices ahead.

Monday, March 7, 2011

S&P500 Short-Term: Update

Refer to previous post, suggesting a short-setup on SPX. Although, the 30-min RSI never made it to 70, price moved down swiftly, taking the lower trendline downriver. Around 1300 support, a nice back-test followed. If you've taken a short position, move your stop down to the back-test level to protect your profits. Failure of 1300 zone may result in 1275. This move down, if it happens, is likely to be choppy.

Sunday, March 6, 2011

Shanghai Composite: Upside Breakout!

Last update on the Shanghai Composite noted resistance at 2950. After a decent correction, SSEC jumped up 1.8% today on good volume, and breaking out above this barrier. Target for this move up is 3180. But first, there may be a back-test of the breakout. Also, the medium-term picture will get very interesting around the target levels. Stay tuned!