Thursday, December 13, 2007

STI down to 3479

STI dropped another 70 pts to close at 3479 with a volume of 1.6 billion. Banks and property continued dropping after the rate cut. Dow opened up 200 pts but closed around 40 pts up, a rather disappointing performance.

A news to share about construction:

1. Koh brothers secured a S$78.9 million contract from MOE to build river valley high school and hostel. Again, this news was totally discounted from the price today, as Koh bros traded down 0.035 to close at 0.420.

STI looks set to go down after breaking short term support at 3500. Well, drop lah! It'll be interesting to see how we close for Fri. Weekly chart shows a symmetrical triangle - that means equal chance of breaking on upside or downside. I still hold my view - that it's more likely to break on the upside than down. Of course, must wait for confirmation by looking if STI can break the top trendline (bullish) or break the bottom trendline (bearish). Since the triangle converge towards end of dec, I think the showdown between the bulls and the bears is coming soon - latest by Jan 2008.

What to do? Watch the stock you're going to enter with an extra pair of eyes - once it hits the target, can go in. Of course, that is if your views is still bullish :)