Wednesday, September 30, 2009

Shanghai's SSEC index at the tipping point

Shanghai's SSEC index tested its medium-term uptrend line again yesterday (see Chart 1). As at 2.20am ET today, SSEC index was up 30.2 points (or, 1.1%). Will SSEC index recover from here on?


Chart 1: SSEC's daily chart as at 29/9/2009 (Source: Stockcharts.com)

A look at the weekly chart below revealed the following:
1. The 10-week SMA has curved downwards while the 20-week SMA is now flattening out.
2. The weekly MACD has done a negative cross-under.
3. RSI has pulled back significantly & is now below 50.
4. The -ve DMI is attempting to cross above the +ve DMI, which could signal the beginning of a new downtrend.

The last time we saw the congruence of the same signals was in November & December 2007, which was the top for SSEC. Can the same thing happen again? Yes, especially if SSEC index break below the 2700 level.


Chart 2: SSEC's daily chart as at 29/9/2009 (Source: Stockcharts.com)
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6 comments:

  1. tehThursday, October 01, 2009 1:35:00 PM

    This comment has been removed by the author.

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  2. tehThursday, October 01, 2009 1:35:00 PM

    Hi Alex,

    Can you comment about Dutanland? Tx

    ReplyDelete
  3. tehThursday, October 01, 2009 3:35:00 PM

    Hi Alex,

    Can you comment about SAAG as well. Is that the company still have potential?

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  4. Alex LuThursday, October 01, 2009 4:07:00 PM

    Hi Teh,

    SAAG made a small pre-tax loss of RM2.5 million in QE30/6/2009. Its turnover dropped to RM59 million from a high of RM185 million in QE31/12/2008.

    Technically, it may test its strong horizontal support at RM0.18-20 before bottoming process kicks in.

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  5. tehThursday, October 01, 2009 4:28:00 PM

    Hi Alex,

    Tx for ur comment.. then how about the Dutaland?

    ReplyDelete
  6. Alex LuThursday, October 01, 2009 5:25:00 PM

    Hi Teh,

    There is a recent favorable news item for Dutaland. UNP Plywood Sdn Bhd (‘UNP’), a subsidiary of DutaLand won a legal suit claiming RM128,673,270 for losses arising from wrongful termination of two timber extraction and purchase agreements entered into between UNP and Sabah Forest Industries Sdn (‘SFI’) on 28 June 1993 and 13 August 1993 respectively. Whether UNP will ever receive the amount awarded is another question.

    Chartwise, Dutaland is now resting on its uptrend line support at RM0.55-56. This could be a good entry level to the stock.

    ReplyDelete