Biosensors

Buy Biosensors at $1.27 on 22nd June

Trade Decision Conditions:

1. STI has rebound from the support trendline connecting the 2010 correction low and 2011 March low.
2. Biosensors have defended well from the correction. The 10MA is turning up, and $1.27 is the support of this line.

Stop: $1.20

NOL

Sell NOL at $1.87 on 16th May; Buy at $1.91 on 10th May

Trade decision conditions:

1. NOL triggered the stop
2. Bearish outlook on US markets and STI

Loss: 2%

NOL

Buy NOL at $1.91 on 10th May

Trade decision conditions:

1. STI staged a critical rebound last Friday
2. NOL breaks 10DMA of $1.87 and the 10DMA line is turning

Stop: $1.85

STI

STI suffered a pullback on 3rd May 2011. With lots of events happening - Elections, US markets facing resistance, high oil price, a correction seen to be inevitable. Month of May has always been a period to avoid in the stock market.

The 3120 support which everyone claimed to be a critical one, may be difficult to hold. I am looking for the index to fall toward 3045. Anything under this point will be a good chance to enter. The channel made the index looks extremely bearish. Personally, i feel that it is not possible for the index to fall lower than 2919 (Previous low). As i see the second half of the year to be bullish, a new low is very difficult. Let's be patient and i post more stocks to be considered to ride the wave.

STI

Yesterday, i mentioned about US bearish outlook affecting STI performance. I went back to redraw the STI chart to have a good look of what's happening.

By redrawing the whole picture, we can see that STI is on the edge of the resistance line of the channel. Breaking of the channel will indicate a bullish sign. With the bearish US outlook, I feel that the resistance will hold for the mean time which prompt for a pullback. Will it have a correction to the lower support line? With the Singapore election coming, i feel that it is less likely. Watch out for 3120 level and 3080 for a rebound.

Will US affect STI performance?

After i sold off my stocks last week, i was watching patiently to see whether STI will continue it's run. The global situation may play a part in it's performance. Let's take a look at S&P.

The double top looks scary for me and the PPO triggered a 'sell' at the moment. It's a bearish chart, most likely will break the MA(50). If there is a major correction in US, what will happen to STI?

Will STI hold well because of the May's election? I will do a proper analysis on STI chart on the next few days.

STI status

Above is the STI showing the short-term downtrend channel. It clearly shows that STI is approaching the upper resistance line. It is around 3225 area, and i believe it will stage a pullback over there. Risk will be lower if you start the shorting over this area. But from now till that area, it is still about 50 points away. So just hang on, wait for Mr. Market to tell you what to do.

Weak counters: Wilmar, KepLand, DBS
These counters appeared to be weak but the wave support them. At the mean time, it is not advisable to enter any shorts yet. Follow the old saying 'Trade with the trend', i will not react yet till Mr. Market says so. Again, these counters are based on my own analysis. Please do your own homeworks before any trades.