Wednesday, October 24, 2012

STI Sideway To Bearish Tone


US market had a bad closing last night.  Dow plunged by 243 points.  It seems like we are seeing more volatility recently.  With earnings starting to disappoint investors it is likely that the volatility will continue.

For Singapore, the STI has held pretty well.  Last Friday’s 200 points drop in Dow Jones Industrial Average did not bring about a sell down on Monday.  It will definitely be a gap down today.   So where is the support?

The first support is at 2977 the pivot low made on 6 Sep.  The next support will be at the 38.2% Fibonacci retracement level of 2938.  If 2938 gives way, the index is likely to test the 61.8% level of 2846

MACD is bearish at the moment.  Having tried to make a bullish crossover, the MACD histogram looks to be turning down.  Such pattern failure usually brings in the sellers.

One slightly positive indicator is the ADX indicator.  It is not shouting a sell signal right now with ADX below 20 level indicating that there is no strong trend pattern at the moment.  The +DI looks set to go below –DI indicator suggesting that a more negative tone is forming.

2 comments:

QUALITY STOCKS UNDER FOUR DOLLARS said...

The bears will soon return.

Loyce Parkin said...

I know gold continue to be bearish but not all of the indixes in the stock market are following such trend. Upon checking optionbit review optionbitsreview.com I realized that the most unpredictable thing always happen, the last time I knew USD continue to be bearish but right now it has a bullish approach. The thing is we cannot generalize entirely the direction of every indices in the stock market if we don't know some basis.

STI Sideway To Bearish Tone

US market had a bad closing last night.  Dow plunged by 243 points.  It seems like we are seeing more volatility recently.  With earnings...