SGX Weekly Review 090320

There has been many daily reviews and weekly reviews on Dow Jones, NASDAQ, S&P500, SPY, FLX, etc, etc. Just don't find any SGX reviews. So, it's time I do one. Hopefully, someone else will also start to do it.

Looking at the daily chart of FTSE STI, the comments are as follows:

On week ending 090313, we saw a strong rally that propelled the STI advancing more than 10% over the previous week. On week ending 090320, the STI still advancing but at the slower rate. The volume has also diminished slightly but does not seemed significant. MACD showing a little bit of topping sign and we may expect red charts appearing soon even though the signals still moving up. Stochastic reaching overbought on daily basis. I expect the market to further correct itself in the coming week but it does not mean that it will close lower. However, it is highly probable that it will touch 1560. If it close below 1560 for more than 2 consecutive sessions, it could indicate further decline. However, if it bounces up from there and proceed to close above 1600, it could lead to further rally to 1670.

Stock Trend Analysis: Head and Shoulder - CityDev

Referring to my previous blog on CityDev on Jan 12th 2009:

http://stockmarketnews.blogspot.com/2009/01/stock-price-pattern-citydev-head.html

I had mentioned that CitiDev has broken the neckline of the head and shoulder and the potential price target was S$5.12. The following chart shows closing price on Feb 27th 2009. The closing price was S$4.8. It has broken the support of $5.12. This is troublesome. It appears that this counter is forming a new down trend.

However, after more than 1 month of selling down, there is hope of a short re-bounce. Holders of CityDev will be hoping to sell into the re-bounce. That will put further pressure on this counter.

Importance of Major Trend

Previous blog entry, I mention that in case of indecision, the price will eventually resolved according to the major trend (in this case, it is downwards).

On the hindsight, on studying of ComfortDelgro, we can see that the counter is now trading is a downward channel. It closed at 1.46 on Jan 14th 2009. Subsequently, it went down and had a short bounce. I was lucky to had queued at 1.50 on the Jan 30th and got rid of my holdings which was bought at 1.49. It closed at 1.31 on Feb 27th, ending Feb 2009 with a loss of 0.15 (1.46 - 1.31). Feb 2009 low was 1.25.