Is time to
review the global market. First, let’s
look at the 2 important ASIA indices – China Shanghai and Hong Kong Hang
Seng. Despite the recent roller coaster
ride from the US, Shanghai and Hang Seng went into a different direction - up
instead of down.
Shanghai
index - divergence formed on mid of March.
Third week of March a triple bottom with an engulfing candle triggered. There was where the trend turned. First week of April, it retraced and formed a
mini revert head and shoulder. With this,
the trend continue despite the US was down.
Can SSE continues trending upward?
Important resistant level at 2175 and 2260. Besides that, continue higher high, higher low
pattern is preferred. Otherwise look at
candle pattern at level for indicator of trend change.
Hang Seng –
do you see a “W” shape in the Hang Seng charting? And also the double bottom? Followed the Shanghai market, on the third
week of March it has a double bottom with an inside bar candle triggered. Yesterday it touched 23230 resistant
level. Can they continue trending
upward? First, it has to break this 23230,
then follow by 2 major resistant level at 23520 and 23980. Same
as Shanghai, continue higher high, higher low pattern is preferred. Otherwise look out for any candle pattern at
level for the indicator of trend change.
Now, we
look at our big brother, the US market. It
was once again, a roller coaster ride. Each
day, their up and down was hundreds over points. NADSDAQ has down 7.3%. Last night, it dropped 3.1% and now near to it
critical support level 3990. If it break
this level, it means the Opera House neck line is broken. Watch out on this. DOW has a divergence after the March window dressing. It is very close to its first support level 16060. If this level is broken, look for 15700
and 15350. S&P last night broke
1840. Was this a confirmed or a fault
break out, look at tonight how S&P moving forward. By reading all his, you can see that the US
market is now at the critical support level.
And the ASIA brothers China Shanghai and Hang Seng are now at important
resistant level. Same goes to STI.
Now, let’s
look at the STI. As I mentioned, resistant level after 3167 are 3200 and 3230. STI used 3 days to break the 3200 resistant
level. When it reached 3228, there was
where the retracement took place. Today she
is trying very hard to stay above 3200. Can
she hold on to this level? If yes, this
whole retracement plus consolidation may push STI to move upward. Otherwise we shall look at 3167 and 3150, to see whether they can turn from resistant to support.
Each time
when there is a plunge, we will hear someone saying because of this, because of
that. Just like the recent one, FED
Janet Yellen hinted that the interest rate could be rise in early 2015. Much early than what analysts and economists
predicted/expected. Because of this, the
market plunge. Remember I always said
that, fund managers and professional investors/traders see the market and economic
differently. And don't forget, stock market move ahead
economic. So do your own analysis and don’t
listen to others.
