Chart 1: DJIA's daily chart as at May 21, 2010 (Source: Stockcharts.com)
Chart 2: FTSE's daily chart as at May 21, 2010 (Source: Stockcharts.com)
This morning, SSEC broke above its medium-term downtrend line ('RR') at 2600. It may test the horizontal resistance at 2900 or the 50-day SMA line at 2947. See Chart 3.
Chart 3: SSEC's daily chart as at May 21, 2010 (Source: Stockcharts.com)
HSI has also rebounded off its strong horizontal support of 19400. If it can surpass the psychological 20000 level, it may test the horizontal resistance at 21000. See Chart 4.
Chart 4: HSI's daily chart as at May 21, 2010 (Source: Stockcharts.com)
Based on the above technical outlook, I believe the global equity markets could be in for a decent rebound over the few days. The big question is whether the worst is over or has it just begun.
12 comments:
Good technique analysis (TA)..
fuyoh. . .still learning. . .
the mkt opening and fall donw to -20 really suprise me as well .. thus i cancel all my order . .and try to re-q again . . .
end end get nothing yet..
earn nothing is better than i suffer lost. .
Dear Alex,
WE must watch out the possibility of the KLCI trespassing the Critical 200 D EMA level if the European Debt problems/Fear cannot be subdued/ suppressed promptly, However, I still think that it is unlikely,THAT THE MARKET WILL SINK very far BELOW THE 200D EMA level(1260-1265),:: , ..The fear that the Euro might come undone and the European Union dissolved had always appeared to be a low probability to me, if not to others. The approval on Friday of the Greek bailout by Germany's Upper House of Parliament signaled once again that country's willingness to back the union and its currency for the foreseeable future., Secondly, it shall be the passage of a financial reform bill for USA. AS SUCH ,I'm betting the nightmare is over and a week from now it will fade to bad dream status and a month from now it will have become simply another opportunity to buy on the dip.
Thanks
High chances of having KLCI falling, just like the American subprime, I doubt the Euro will be settle that soon.
Why not adapt to Templeton tactic, buy when you see bloods in the market?? Very unkind but I think it is very useful indeed. What say u Alex?
Dear alex,
Thanks for your analysis days ago.
Is KNM now at the bottom down trend since the price maintain at .50-.51 for some time?
What is the possible bottom line for GENM to hold, based on the current market?
kyong's view is quite refreshing amidst the dark day of our market. I pray the same would come true.
THanks again.
Dear Alex,
Wonder how some people know when the financial results of a company is gonna come out before Bursa announces it?. Thanks.
Dear Alex,
If we analyse the KLCI, WE may know why there is a Sell Down of the local equity to the lowest level 1264 even though the regional/ world markets reacted differently TODAY ?
ATTACHED, Please find the Equity with their respective MAX.price drop(Lowest) within the day:--
Sime -0.42
KLK -0.30
MAYBAN -0.15
PUBLIC BANK -0.36
CIMB -0.11
IOI -0.10
TENAGA -0.15
The above Foreign Fund cashed out from the Bursa since last Thursday with the following imminent reasons:--
1) Ringgit(RM) is in a short/mid term bearish trend vs the USD,
2) Upside (Reversal) momentum on KLCI looks rather weak on Technicals, (Palm oil stock= -ve ); (Financial = 0 Neutral);(Property, =-ve,);(Industry,=neutral)
3)USD is extremely Bullish vs Euro,GBP, CHF,and JPY.
So , we can understand that USD cash can make more PROFITS NOW compared to depositing into Bursa.
Basing on the above, we would predict that FkLI For May/Jun should hover within the range 1260-1300 for some days ahead.
Thanks.
Hi Ivan,
Thanks. Good luck to your trades.
Hi solomon,
Buying when one sees blood on the street is a cliche that is easier said than done. If we do it too earlier, we joined the bloodbath! I remembered a guy, who made RM1 million from a delisted stock, Omega in 1996, tried to put the above cliche in practice in 1998. He loaded up on stocks & when the market continued to spiral downward, he took on margin facilities to buy even more stocks. In the end, he lost everything- his RM1 million gain, his house & his two cars. I believe investing in the market requires moderation & humbleness. The guy who made the RM1 million became a very proud person & his pride & ego affected his judgment.
Hi Layman,
I don't know when KNM will make a bottom but it has good support at RM0.50-0.51. GENM is trading sideway with support at RM2.65-70.
Hi qian qian,
A listed company with proper investor relation department would normally send out emails to research or brokerage firms, inviting them to attend its briefing on the release of its quarterly results. This invitation would be sent out 1 week in advance.
Hi Kyong,
Thanks for your updates. Your last comment about the possible reasons for the market selldown is spot on. To wit:
1) Ringgit(RM) is in a short/mid term bearish trend vs the USD,
2) Upside (Reversal) momentum on KLCI looks rather weak on Technicals, &
3)USD is extremely Bullish vs Euro, GBP, CHF,and JPY.
I agree with these assessments.
Dear Alex,
Your comment on Solomon's feedback is excellent,,reflecting your Years of Exposure in the realities of Market sentiments.
Quoting your words--"""I believe investing in the market requires moderation & humbleness. The guy who made the RM1 million became a very proud person & his pride & ego affected his judgment.--"""unquote
Oh ! Keep it coming, Dear Alex!! ,
Thanks
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