SembMarine playing at the 200D MA Support

Sembmarine is currently at the 200D MA support. We should see a bounce off this level in the next few trading sessions if this would to be a strong support level to carry on its ascending triangle pattern.

KeppelLand Outllook

Currently KeppelLand is supported at the 3.85 level (resistance-turned support). Although there appears to be a slight bounce off this price level for the last trading day, if current market sentiments were to bring it below this level, it would likely reach the next support level at 3.60, which is where the 200D MA line and the uptrend line since last year November lies and remains nicely intact, before staging a rebound from there.

NOL sideways movement for the week

For the last week, NOL has been displaying sideways movement in the price range of 1.92 to 1.99. 1.92 has the the historical resistance turned support level for the price of NOL, while that of 1.99 was established when NOL retreated from this price level over the last few days. Volume has been deceasing, and indication that market participation has been declining. A breakout and a subsequent close above 2.00 would be necessary to induce buyers back into the counter to lift sentiments.

NOL: Bullish Deliberation Candlestick Pattern

Over the last 3 days, NOL displayed 3 candlesticks that fulfill most of the criteria of a bullish deliberation candlestick pattern, except for one rule, that is such a pattern should appear after a downtrend. Though a bullish deliberation candlestick pattern is not necessary a bullish reversal pattern, it does indicate to some extent that the downward pressure on the price is weakening. Volume is still high, indicating selling pressure. Currently, price is at 150D MA, and it is fair the expect some consolidation around this price level to occur with declining volume.

Market risk these few days is high. STI looks to be going back to forming its full Head and Shoulders pattern with the past few days of consecutive decline, and quite a few of its component stocks does display signs of bearishness. Coming from US are repeated series of gloomy economic outlooks that put anxiety into market players. If there is no further signs of bulls presence, bears might just take over with the all the renewed uncertainties and concerns of a W-shaped recovery or even a L-shaped recovery or rather, stagnation.

SGX hits the upper price channel

Since august last year, SGX has been trading in a downward price channel. Today SGX touch the upper channel and there is a pullback, indicating that there is strong resistance at the top of the channel. If price is unable to break the top of this channel, there might be further worry and impatience and pulls the price back to the middle of the channel.

The Week before National Day

I shall post some of my observations i have made over the weekend for this post.

First of all i found the ascending triangle pattern for 2 of the stocks SingTel and SembMarine. Though Sembmarine broke out of its symmetrical triangle 3 days ago, there appears to be an ascending triangle it has to break out of before there can be any real confirmation of a bullish signal.



Now for SingTel:



Further Bearishness is also noted for SGX. It will be interesting whether the fundamentals from the release of 2Q10 results on Aug 2 would be able to take this stock out of downtrending channel since last year.



Finally, for the last week, we witness NOL breaking out of its symmetrical triangle. If prices could hold above the upper trend line of the triangle on Monday, it would have meet the 3 day breakout rule, and the target price technically speaking would be around $2.50. This is estimated from measuring the length of the base of the symmetrical triangle and adding this length onto the breakout point which will project the target price to around 2.50. (Click on this link to view more about Symmetical Triangle Breakouts: http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:symmetrical_triangle )

Last but not least, we should pay close attention to market risk. If he STI could do a successful close above the pyschological 3000 points, we would be safe to hold on more positions in the market. If it pulls back in the other senario, then we would have to carefully watch out for any further materialisation of the Head and Shoulder's Pattern.

Happy trading and a happy National Day!