Gold has shown weakness recently and GLD chart has shown a reversal pattern to indicate the pull back.

• GLD has broken 20D and 50D MA with gap down.
• GLD is unable to break the 50D MA resistance although the recent rebound. This 50D MA support now becomes resistance.
• Bearish Engulfing candlestick pattern formed at the 50D MA resistance., after a short rebound.
• Base on the long term GLD uptrend chart pattern, everytime GLD break the 50D MA support, GLD will head towards the uptrend support (also the 23.6% support line of Fibonacci Fan) and the 200D MA.
• MACD Bearish Convergence.
• GLD starts to stick on lower band of Bollinger Band.

Current chart pattern represent a good opportunity to short the SPDR GLD shares and also opportunity to buy on dip when pull back to 200D MA support (provided the Gold rebound from the support).

See other related news:

• End of Fed’s QE2 portends rocky ride for gold rally
• Where is the Gold Direction?
• Investing in Gold
• Why are Gold Stocks Underperforming Gold?

Straits Times Index (STI) has been trading within a Symmetrical Triangle for 3 months but broken down with a long bearish candle last trading day. This breakdown of a Symmetrical Triangle may send STI index down to 3,000 level which is also a psychological support level.

Also take note that the current STI is trading below all 4 Moving Averages (20D, 50D, 100D and 200D), 20D MA is crossing down 200D MA, MACD in Bearish Convergence region…. other technical indicators are also showing the bearish momentum of STI index.

I am bearish on STI in the coming weeks. Any BULL out there to share your view?

JPM is forming at Double Tops and currently just sitting on the neckline at $37.70. Base on the chart, there is a very high chance for a breakout of this Double Tops chart pattern due to the following observation:

• JPM is unable to break the 20D MA resistance (shaded in red) and bounces down.
• 50D MA is crossing down 200D MA.
• Stock price is hooking on the lower Bollinger Band
• MACD is going to show Bearish Convergence
• Parabolic SAR is going to reverse.
• RSI and Stochastic are reversing and turning down.

Plus fundemantally, all the negative news in Euro zone debt crisis and no clear signs that the crisis can be resolved in near term. Besides the PIIGS, now Hungary is coming into picture! I feel this crisis is even worse than than US financial crisis because Euro zone cannot print money to save those countries.

The breakout target price is $27.70 which is close to the 61.8% Fibonacci Retracement Level. I find no reason not to short JPM by buying a PUT option base on the current analysis. In addition, the implied volatility (IV) is low that make the option not so expensive. Any contrarion out that have a bullish view?

Genting appears to be forming a Bearish Descending Triangle in an up trend. If this triangle is formed and the stock price breakdown from the triangle support, a trend reversal pattern is confirmed. In addition, Genting has just broken 20D and 50D MA support lines. RSI is heading south (31% now) and MACD shows bearish convergence. These are Sell signals.

Starhub stock price dropped about 5% after ex-Dividend date on Nov 24. The stock price broke 20D and 50D MA support and looked very bearish. MACD is also showing Bearish Convergence and further down trend is expected. Next critical support is $1.83 which is very close to 52 weeks historical low of $1.76.

 

Both charts look bearish and I am waiting for the stock price to hit bottom before buying for long term investment (for dividend collection).

GS appears close to complete the forming of right shoulder. The stock is unable to break the uptrend support turned resistance line & its 50D MA. If GS breaks the neckline, the stock may be sent down to $144.
Other Technical Indicators (MACD, Parabolic SAR, RSI, Stochastic, Bollinger Band) start to show bearish convergence.

Cosco breaks the Falling Wedge support and 200D MA support today. Stock price is at the lower Bollinger Band and MACD also shows Bearish Convergence.

Summary of analysts’ recommendation on Cosco Corp:

Cosco’s chart is VERY BEARISH and I am avoiding this stock totally. Not the right time and right price to buy for long term investment as the price may go lower!

SGX has started the correction. Standard Six Technical Indicators showed Bearish signal.

• MACD showed Bearish Convergence.
• RSI & Stochastic are heading south.
• Parabolic SAR line on top of stock price.
• Stock price is under 20D and 50D MA.
• Stock price is at the lower Bollinger Band.

FRE & FNM broke the critical support level (61.8% Fibonacci Retracement level) after a KBW analyst downgraded the two to the firm’s lowest rating, cut price targets on both stocks to zero from $1. KBW said their common and preferred shares would be “worthless” given the nearly $100 billion they will continue to owe the government, even if recapitalized. FRE broke the critical support level of $1.705 and FNM broke $1.483 support level. Both stocks are below the 20D & 50D MA, all other technical indicators show bearish convergence.

Raffles Education closed at $0.49 with another bearish candle today. It looks like the down trend is starting soon. All other technical indicators showed weaknesses:

• Stock price below 20D, 50D and 200D MA.
• Stock price below the Parabolic SAR line.
• Stock price at lower Bollinger Band.
• MACD is becoming bearish convergence.
• RSI is moving down.
• Stochastic is bearish and at oversold region.

Immediate support at $0.485 and next support is $0.45.
I am staying out this stock until I see a trend reversal.