Thursday, November 29, 2007

STI up 3.22%

STI did a superb move upwards today, after a very good showing by Dow last night. Dow was up 331 pts (2.55%), and today STI followed it to close up 108.5 pts (3.22%) at 3478 with a volume of 1.78 billion. I've not seen STI rallied up so fiercely for some time already - but it's true that STI is getting more and more volatile nowadays, almost mirroring the crazy HSI volatility.

All it takes is the 2nd in command from FED to say a sentence - that FED should be more nimble and not let the economy suffer in order to punish the speculators. That's enough to push Dow up so much and consequently the rest of the bourses.

Technically, I don't like the many gaps that form as we move up and down. Gaps just show how impulsive buyers are, can't wait to enter and ride the momentum. With today's rally, STI broke ema200 days resistance at around 3420. What I hope to see is that this resistance becomes the new found support level for STI while waiting to clear the next resistance at ema 20 days - 3480 thereabout. The testing of support is important - we could be in turning up already from the fresh selling last few weeks.

On weekly charts, STI tested ema 50w, a very important support level for STI, considering that it always rebound up from it. This important support level had been tested 3 times since 2005 - once in Oct 05, another in June 06 and lastly in August 07. We're now at this level - can it serve as a support again? I'll say highly likely. Ah, but the question is how high will we go this time?

Yongnam rose up 11% today, the rights was up 43%. Construction was suddenly up. This was followed by Lian Beng's trading halt. Construction contracts coming? Let's see if they will announce more details tmr.

My internet is too shaky for me to blog more. Better post it up first.