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!