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Hang Seng Index

Hang Seng general up trend still in tact. This week will be an interesting week as it has formed a chart pattern falling wedge (similar to STI). Resistance to be around 21,120 and support around 20,640. Bullish movement will resume if it break resistance with volume supported.

I am still bullish in this market.

Straits Times Index (STI)

Generally, STI up trend still in tact. This week will be an interesting week due to my chart shown below. It appears that STI has formed a falling wedge. 2975-2980 is the resistance that STI needs to break with volume supported for this week before it can resume its upward movement. The support is seen to be around 2930.

I am still bullish in the long run for STI.

StraitsAsia

As shown in my chart, StraitsAsia has reached support (red line) and rebounded. This rebound is convincing to me with some spike volume supporting the movement.

StraitsAsia might hit resistance of 2.33 / 2.73. 

STI broke critical bear flag and support line on 05 Feb 2010 (see below chart). I am expecting STI to continue with its retracement to around 2580 support level. I will look to re-enter STI market when it rebounds at the support level.

Sentiment - Bullish!

Hang Seng broke critical support of around 20970 on 21 Jan 2010. A strong retracement has taken placed after that. Based on my below chart, I expect Hang Seng to continue with its retracement to around 18970 support level.

I am looking to re-enter the Hong Kong market if Hang Seng rebounded from the support level.

Sentiment = Bullish!

Major trend - Major up trend support trend line (black colour) has been broken as shown inside my below chart. It shows sign of weakness for the up trend. However, there will be an immediate support at around 2500-2450pts. The next level of support will be around 2200pts. The resistance if will test (if it does move up) will be around 2650pts.

Interim - Currently market will try to test the support and I am biased towards "Long" until the chart shows me a reversal of uptrend which is further supported by Fibonnaci level. I am tightening my position (protecting more profit) and unlikely to look to enter any new position until market shows me strength of rebound at the support around 2500pts. Meanwhile practice patient to wait for opportunity as prices will be lower which we can look for lower risk buy.

Major trend - Major up trend line has been broken yesterday. It shows sign of weakness for the up trend. Personally I don't feel comfortable to short even if this up trend line if broken. Only look to short when down trend has been confirmed with reversal via Fibonnaci level.

Interim - Hang Seng is still inside the bull flag and if it does have enough strength, it will test to break the resistance of the bull flag. However, given current market sentiment and shown from Shanghai stock exchange, it will be an up hill task. Immediate support will be 18950pts. If this is also broken, the next support will be 17400pts. I will only look to buy if Shanghai stock exchange shows strength to go up.

Major Trend - Shown in the chart below, major uptrend support line has been broken. It has shown weakness.

Interim - Current Shanghai has been supported by 2680pts support line. If this support is broken, the next immediate support will be 2550pts. This correct is a heavy one. Personally I don't see this as a reversal but a heavy correction. Unless 2360pts is broken, then it will be a reversal from me. This is shown in Fibonacci level inside my below chart. I am still biase towards buy but not entering any new position until market has shown strength at the support line of 2680pts.

Major Trend - Up trend still intact as shown by the 2 red channel. From Jun - Aug, DJ has been directionless, waiting for things to happen and 2 days ago, it seems to finally found its direction by breaking the support.

Interim - I am anticipating DJ to try to break support of 9000pts before joining back the rising support trend line (red colour) about 8900pts. Advise to stay out of the market if haven't enter trade. Patiently wait for opportunity to enter to "Long" when market reached support and starts to turn. I fancy "Long" position.

STI

Major up tend as shown in the picture with rising channel drawn with trend line (red & back colour). STI has formed double bottom and breaking the neckline around 1950pts which shows a reversal chart pattern.

Resistance - around 2700pts. If broken, will test 3000pts which appeared to be psychology resistance level.