20050929 Technical Outlook JetFM
CI may have reached an intraday high of 929.52 before settled at 924.5, 0.3 point away from the low of the day.
It is in fact crucial to see CI not only crossing over the 930-level; but also to close above this level at least three days in a row to gauge the strength of a subsequent up move.
As we will all be hearing 2006 Budget on Friday, "Funds" have also decided to take the unnecessary risk by not locking in some of the profits in their stock portfolio. A realized profit is only considered a real profit in the pocket.
With this settlement level, CI may have some hard times going above 930-level, unless the Budget really has something tremendous to offer to the stock market. Otherwise, traders will continue to lock in their gains, once that happen, CI would be under pressures to go lower.
For Thursday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 927.95 & 931.39. 1st and 2nd support levels will be 922.63 & 920.75.
Chart wise: The closing of CI at the low level has in a certain extent given out a signal that the stock index is kind of "toppish" near 930-level.
Technical wise: MACD was in the positive territory. Directional Movement Index showed that +DMI was above the -DMI. On Stochastics indicator, both %K line & %D line has slipped into overbought zone with %K line has just cut down the %D line to emit a sell signal.
Our stock recommendation for today is:
Hing Yiap Knitting Ind (Trading Buy) at 42.5 sen with stop loss at 38 sen
It is in fact crucial to see CI not only crossing over the 930-level; but also to close above this level at least three days in a row to gauge the strength of a subsequent up move.
As we will all be hearing 2006 Budget on Friday, "Funds" have also decided to take the unnecessary risk by not locking in some of the profits in their stock portfolio. A realized profit is only considered a real profit in the pocket.
With this settlement level, CI may have some hard times going above 930-level, unless the Budget really has something tremendous to offer to the stock market. Otherwise, traders will continue to lock in their gains, once that happen, CI would be under pressures to go lower.
For Thursday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 927.95 & 931.39. 1st and 2nd support levels will be 922.63 & 920.75.
Chart wise: The closing of CI at the low level has in a certain extent given out a signal that the stock index is kind of "toppish" near 930-level.
Technical wise: MACD was in the positive territory. Directional Movement Index showed that +DMI was above the -DMI. On Stochastics indicator, both %K line & %D line has slipped into overbought zone with %K line has just cut down the %D line to emit a sell signal.
Our stock recommendation for today is:
Hing Yiap Knitting Ind (Trading Buy) at 42.5 sen with stop loss at 38 sen
posted by emacro @ 8:55 PM
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