SGX – On Down Trend

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SGX has broken 4 supports (20D MA, 50D MA, 200D MA and 78.6% Fibonacci Retracement Level) in one week. Base on the chart pattern, SGX seems to trading in a slow down trend as the new low is always trading lower than previous low.

Key levels to watch:

  • SGX may rebound from $7.701 (78.6% FR level) but it is important to see whether SGX can break the 50D MA resistance (at about $7.90). Base on the current sentiment in financial sectors and Eurean PIGS debt crisis, it is unlikely to happen base on my opinion. However, I can only trust the chart more than my opinion base on my last lesson learnt.
  • If $7.701 support is broken, the near term support is the down trend support at about $7.30. This support may not be strong because it is not very obvious. SGX may go down to $6.878 (61.8% Fibobacci Retracement Level) if this weak down trend support is broken.

In summary, SGX chart is bearish and I am waiting for a clear reversal pattern to pick up this blue chip.

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Singapore Press Holding (SPH) – Breaks the Trend Support

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SPH broke all 3 key supports (20D MA, 50D MA and up trend support) in last trading week. The stock price is approacing $3.736 which is 78.6% Fibonacci Retracement Support Level. There may be a small rebound in the coming week from this support level.  However, if SPH cannot go above $3.90 (the uptrend support and 50D MA), the next important support to watch is 200D MA at about $3.70. SPH may go as low as $3.395 if this 200D MA support is broken.

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China Animal Health – Nice Waves on an Up Trend

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China Animal Health seems like trading in Nice Waves on an Up Trend.  The wave pattern and support / resistance fit nicely on Fibonacci Fan and Fibonacci Retracement Levels. The Uptrend support (green line) fits exactly to Fibonacci Fan (purple lines) at 38.2% line. Whenever the waves hit this 38.2% lines of Fibonacci Fan (green shaded areas), the stock bounces off and form a new high.

Base on the pattern, it is predicted that China Animal Health may test the 38.2% lines at about $0.27. If the stock price bounces of this $0.27 support level, it will test the previous high of $0.36 and may possibly continues the “Waves Pattern in the Fibonacci Fans” if this $0.36 resistance is broken.

It looks attractive to me to enter at $0.27 with a potential upside 33% to reach $0.36 or even higher. However, it is important to wait for the candlestick pattern to reverse before entering the trade.

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