Z-Obee Testing Symmetrical Triangle Resistance

Major upper red channel resistance being tested. This is the resistance line for the symmetrical triangle formation. Breakout above this immediate resistance will meet next resistance at 37.5 followed by the light blue resistance zone. However, a pullback below the current green support zone will retest the lower blue channel support which is also the symmetrical triangle support. Support failure here will force price downwards towards the pink support zone and challenge the lower red channel support.

Yangzijiang Potential Complex Head and Shoulders Formation

A potential right shoulder of a complex head and shoulders chart pattern is being formed. Breakdown below the red neckline support confirms this formation. Neckline support failure will see retest of 90 cent support zone. This potential complex head and shoulders pattern will be invalid if price swings above 1.20 and if it continues to move up there is a high chance of a triple top formation.

Capitaland Potential Diamond Formation

Potential diamond chart pattern has formed on daily chart as at 3.38 pm based on live data updates. A continuation diamond pattern is considered a bearish signal, indicating that the current downtrend may continue. Stay alert and be nimble as a breakdown below the diamond trough may see a drop towards 3.30 support region.

Genting Due Dates for High Volume Trades Approaches

The due dates for the high volume traded on 18th Feb and 19th Feb 2010 approaches and the real test of support will be known soon. If the buying interest is real there will not be margin calls and force selling. The median line of the red pitchfork has been checking the price movement and any upward breakout here will see resistance at the upper boundary of this pitchfork. Conversely, if force selling should happen a retest of the 90 cent doji low support is expected followed by a challenge of the lower boundary of the red pitchfork. Take note of probable supports as indicated by the blue dotted lines. Be nimble and stay alert the moment of truth cometh.

CapMallsAsia Doji Moves Out of Down Channel

From the volume distribution chart the Big Boys sold in late afternoon trading. The doji candlestick signals an indecisive market sentiment and warns of a probable stall in upward move from the green channel. Immediate resistance expected at 2.30 followed by 23.6% Fibonacci retracement level. Observe the price movement as it approaches each Fibonacci retracement level as they are high probable resistance and support levels.

Being a new stock with limited trading history the use of Fibonacci projection helps predict probable support levels below the 1.19 immediate support. Breakdown from this critical support may see a test of the projected Fibonacci levels plotted on the chart. Stay alert and be nimble in case important US economic data rocks or shocks the market.

Yanlord Potential Inverted Head and Shoulders Formation

A potential inverted head and shoulders pattern is forming on the hourly chart. A breakout above 1.82 will confirm this formation. If this happens expect more upward moves towards the 1.95 to 2.00 region. However this potential reverse head and shoulders formation will most probably be invalid if a breakdown below 1.65 occurs. Support failure here means a high chance of a retest of 1.55 recent low.

Genting Doji Below 200 SMA

After testing the pink support Genting closed with an indecisive doji candlestick. Further upward movement will be restricted by the following potential resistances :

1. 200 SMA

2. 200 EMA

3. Green Pitchfork Median Line

4. Neckline Support turned resistance line

5. Upper resistance boundary of the green pitchfork

With the release of grim news after the market closed that Genting posted a full-year net loss of $277.6 million, more than double the $124.8 million in 2008 and that revenue fell 22 per cent to $491. 2 million there is a high chance of a retest of the immediate pink support.

A breakdown below the 90 cents will result in a test of the following probable supports :

1. Lower green support boundary of the green pitchfork

2. Purple support line

3. Pale green support line

4. Complex head and shoulders measured move projection support at around 70 cents

Stay alert and be nimble if you need to take a bet on this bear casino.

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Genting Testing Complex Head and Shoulders Neckline Support

Testing of Median Line of Andrew's Pitchfork and Neckline of Complex Head and Shoulders in progress. A closing below these 2 lines will test the 200 SMA support line. Further weakness will bring price to the pink support line followed by a test of the lower support of the green pitchfork formation.

However, a closing back above the neckline may see a retest of the upper pitchfork resistance boundary. Stay alert and be nimble a weak closing today will probably cause further price drop.

Capitaland Potential Reverse Symmetrical Triangle

Potential reverse symmetrical triangle also known as megaphone formation in progress as a rebound on 8 Feb 2010 takes flight towards the blue dotted major resistance line. If the current tiger pounce continues next week a test of the gap resistance is imminent. A move above 4.00 will invalid this potential megaphone formation.

A retreat from the blue dotted major resistance line will challenge the immediate support at 3.86 followed by 3.80 and then the 3.75 to 3.73 support range. Breakdown of 3.64 to 3.60 support zone means a strong bear will try to punch through the lower bold red support of the reverse symmetrical triangle. Breach of this support confirms the bearish megaphone formation and more downslide is expected.

Looking at the current formation we can see half a diamond. The right side of a potential diamond may be created from a failed megaphone. We will just have to wait patiently as the market determines the fate of this chart.

Equis Metastock Exploration For Best Performing SGX Stock In the Year of the Ox

Congratulations to Ron Sim founder of Osim. Osim wins Best Performing Ox Year SGX Award as shown on Equis Metastock exploration list. With reference to the column heading 12 month the top 5 stocks for the year of the Ox are as follows :-

1. Osim

2. Z-obee

3. HTL

4. Hong Leong Asia

5. PSL


Happy Roaring Golden Tiger 2010 Lunar New Year

GONG XI FA CAI

Genting Potential Complex Head and Shoulders Formation

As shown on the Metastock chart above there is a high chance of a complex head and shoulders top forming for Genting. This type of chart pattern consists of multiple shoulders with a single head or sometimes multiple heads. The double top formation represents the head of this complex pattern.

The left side of this pattern has been completed with multiple left shoulders.
The right side of this dual headed formation can have multiple shoulders or just a single shoulder. At present there is only one right shoulder.

A breakdown of the neckline support will confirm this complex formation. Initial support after this neckline breakdown can be expected at the 200 SMA. Further weakness may plummet price towards the 75 to 70 range which is the measured move from the top of the head to the neckline projected downwards.

A strong upswing above 1.22 will invalid this potential complex head and shoulders formation.

Raffles Education Channels and Fibonacci Retracements

7 Jan 2010
Shooting star halted by 50% Fibonacci retracement

13 Jan - 20 Jan 2010
Hovering near 61.8% Fibonacci retracement

2 Feb 2010
Upswing cut short by red channel resistance

5 Feb - 9 Feb 2010
Fall halted by green support channel and resisted by 78.6% Fibonacci retracement

10 Feb 2010
Shooting star halted by light blue support turned resistance zone

11 Feb 2010 1055AM
Doji indecisive candlestick warning of probable pullback. Immediate support is pink support zone next support is gap zone at 36 to 35. Further weakness will retest green support channel.

Immediate resistance is the light blue zone and the red channel followed by the 61.8% Fibonacci retracement. Clearing the peak formed by the shooting star on 7 Jan 2010 will signal a high probability of a major change in direction from down to up.

DJIA Potential Magaphone vs Potential Diamond Formation

Since the 200 EMA support, the 23.6% Fibonacci retracement support and the 9700 milestone support are very close to each other I will use 9700 as the support that must be broken to confirm the megaphone formations. As long as this 9700 support stands the potential diamond formation remain a possibility. The chance of a green diamond forming is greater than a red diamond.

The Dow is in the midst of forming potential megaphone or diamond formations. These 2 formations are characterised by large swings in both directions as bulls and bears struggle to control the market. An erratic market behaviour is the main building source for both these 2 potentially bearish formations. However, diamonds sometimes are known to be continuation pattern. Dow strong close last night has averted the megaphone confirmation temporarily and it is trying to form a green diamond.

That is good news because it will move higher up away from the critical 9700 support.
The bad news is if this green diamond is a continuation pattern it will still turn downwards.

However, if the Dow can extend its upward movement and gradually reached the red dashed projection line it may have a chance to form a giant red diamond. The bad news is a diamond can be a bearish top. The good news is a diamond can be a continuation pattern. Market sentiment will ultimately decide the fate of this red diamond.

Meanwhile expect more wild swings in both directions.

Yanlord Testing Ichimoku Kumo Resistance

First pop up above the dark storm clouds since 12 Jan 2010 as shown on the hourly chart. This will be the second attempt to turn upwards. The first attempt on 2 Feb and 3 Feb 2010 ended in failure at the upper resistance boundary of the red channel.

The current breakout above the red channel looks promising but it was unable to remain above the storm clouds. Immediate resistance is the 1.70 to 1.71 resistance zone. Next resistance 1.73 to 1.75 followed by 1.77 to 1.80 zones. Clearing 1.82 confirms a probable major upward change in direction.

However, any sudden change in weather condition will plummet price back to 1.68 to 1.65 support zone. Next support 1.62 to 1.60 zone.

Stay alert and be nimble. Beware of crosswind as the potential flight above the clouds begin.

Capitaland Dead Cat Bounce Testing Gap Resistance Zone

19 Jan 2010
Shooting star formed the second apex of a potential double top formation.

22 - 25 Jan 2010
Potential variant hammer and inverted hammer 96 pattern formation stalled the breakdown of the light blue critical double top support zone.

26 Jan 2010
Confirmation of the double top formation when the light blue support was snapped with great bear power. The impact of the bear blow also took out the plum dual support zone.

27 Jan 2010 - 1 Feb 2010
Falling dead cat was caught by 200 SMA and alluring RSI and Stochastics fattened the dead cat as it hovered near the 200 SMA.

2 Feb 2010
Fattened dead cat bounce halted by plum dual resistance zone.

3 Feb 2010
Doji candlestick warning of potential fall of fat dead cat.

4 Feb 2010
Fat dead cat got caught by 200 SMA net again.

5 Feb 2010
200 SMA net breaks and fat dead cat gapped down to orange support zone.

8 Feb 2010
Tested triple support formed by

1. Orange support zone

2. Blue channel lower boundary

3. Red channel lower boundary

9 Feb 2010
Once again the low lines of the RSI and Stochastics enticed the brave bulls who are once again fattening the dead cat. Initail dead cat bounce halted at the dark blue support turned resistance zone and this rebound also filled the gap created on 5 Feb 2010.

News on China condominium sales may fuel the dead cat bounce or perhaps it may be a case of buy on rumours and sale on news. A favourable Dow Jones close may propel the fat dead cat bounce higher. Stay alert and be nimble as the following resistances may end the flight of this fat dead cat

1. 200 SMA support turned resistance line

2. Green resistance zone

3. Dark blue upper channel resistance

4. Dual plum resistance zone.

5. Light blue resistance zone

6. Dark orange resistance zone means dead cat is alive again

7. Gap resistance near 4.20 the cat roars

Immediate support is orange support zone followed by red support zone.

10 Feb 2010 2.15 AM Singapore Time Update

Dead Cat Bounce become Tiger Pounce if Dow Jones Super Cheong close near day top.

Stay alert and be nimble in case Tiger cannot have firm grip after pounce.

Genting Triple Blockade Halts Upthrust

Upthrust unable to breakout above triple blockade formed by

1. Plum channel resistance boundary

2. Blue channel resistance line

3. Orange resistance zone

Bulls need to regroup for another attempt to ram the triple bears combine barricade.
If successful then next resistance is the light blue resistance zone followed by the orange resistance line.

Immediate pink support line being tested and breakdown will drop to upper green channel support followed by lavender support zone. Further weakness will plummet price to test the green mid channel support and the blue channel support. A breakdown below the brown 200 SMA suppport means this casino will be invaded by bears.

Mermaid Maritime Red Wave Down

Chart of Mermaid Maritime plotted using TACT propriety triple coloured waves programmed with Metastock Expert Advisor. Blue waves denote bull zone. Orange indicates transition area where bulls and bears take a rest. Red represents bearish down waves.

DJIA Reverse Symmetrical Triangle Inside A Giant Megaphone Formation

Megaphone formation is similar to reverse symmetrical triangle pattern. Megaphones forming at the top of an uptrend are also known as broadening tops. Those forming at the end of downtrends are known as broadening bottoms.

Megaphone or broadening formation shows higher highs and lower lows. The huge red magaphone shown on the chart above is a broadening top. The smaller green megaphone or reverse symmetrical triangle forms the lower portion of the red megaphone. A very rare formation in charts.

The bears were disappointed when the long legged doji managed to close above the lower support of the giant red megaphone and the lower support of green reverse symmetrical triangle. With this closing the doji declares that there is no confirmation for both megaphones.

If the doji cannot stop further weakness next week then both megaphones will be confirmed if the index breaks the red 200 EMA support line and the 23.6% Fibonacci retracement support level. Next support will be the blue 200 SMA.

However, if the G7 finance ministers meeting ends with good news then the green megaphone may start to form a mirror triangle that results is a diamond pattern as shown in the chart below. Diamond patterns are also typically bearish but, strictly speaking could also be a continuation pattern.

Depending on how the market behaves in the coming weeks and months there may be a potential to form a giant red diamond pattern. Then will it be a top or a continuation pattern? We cannot cross that bridge until we come to it.

Stay alert and nimble in case the megaphone confirmation dash hopes and dreams of sparkling diamonds into an avalanche of falling rocks.

Yanlord Typhoon

Plummet across the light blue support zone creating a hugh gap on opening this morning. Further weakness will result in a test of the lower support of the red channel. Upward resistance will probably be encountered at the following locations

1. Immediate green trendline resistance

2. Psychological milestone resistance 1.60

3. Current day opening price 1.62

4. Light blue support turned resistance zone 1.65 to 1.68

5. Gap resistance 1.68

6. IF the dead cat bounce suddenly develop wings upper red channel resistance

Next Typhoon Review will be posted when there is a diversion out of the red channel.

CapMallsAsia Storm Cloud Returns

With just only a single day of sunshine the storm clouds are back again. The lower support of the green channel has turned into resistance as shown on the hourly chart.
A new all time low 2.19 was just created a few minutes ago and further weakness will retest the red dual channel support zone.

Upside rebound with meet the following resistances

1. Blue dual channel resistance zone

2. Lower support of the green channel

3. Ichimuko kumo clouds resistance zone

4. Gap resistance formed by recent fall

5. Pink dual channel resistance zone located slightly above the kumo

Yanlord Storm Clouds

Unable to clear the Ichimoku kumo storm clouds on 2nd and 3rd Feb 2010 as shown on the hourly chart. Storm ahead as the 1.68 and 1.65 immediate support is being tested now. If a hole is punched through this support zone expect Yanlord to sink towards the green support line and further weakness may plummet price to test the lower support of the red channel.

Any upside is being shorted by lightning from the hovering storm clouds and only a flight above this zone will bring the much needed relief and bright sunshine.

CapMallsAsia First Sunshine

First time price moves above the Ichimoku cloud since 17 Dec 2009 as shown on the hourly chart. This Ichimoku cloud which is called the kumo in Japanese will now act as a support zone. Trading will most probably be confined within the green channel.
Further review and assessment will be conduct if there is a breach of this green channel.

Z-Obee Potential Pennant Formation

A breakout above the upper boundary of the triangle confirms the pennant formation and a probable continuation of the previous uptrend. This upward movement will meet resistance at 39 and 40 to 40.5 resistance zone. Clearing these resistances will empower an upthrust that will propel price to new uncharted heights.

However, if there is a breakdown of the lower triangle boundary the potential pennant will be transformed into a potential flag if price does not break the green dotted support line. A fall below this green line will invalid the potential flag formation and will plummet price towards 30 cents.

Sinotel Cup and Handle Weekly Chart

A breakdown from the 50 cents blue dotted immediate support line will see a retest of the lower support of the red channel. If this lower boundary which forms part of the handle of the cup and handle formation fails expect more downside to the 42 to 40support zone.

However, a rebound from 50 cents will retest resistance at 53.5 flowed by 57.5 and the 59 to 60 resistance zone.

Genting Doji Bets

Doji halted by plum channel resistance line after having a rebound from the lavender support zone. Dead cat bounce card is being played in this game of chance. How high can this dead cat bounce? Bettors against the doji will be hoping for a upward thrust towards the orange resistance zone and light blue resistance zone. A triple bear guards unit is on patrol ready to take on any bulls that dare to venture near them.

The 3 bears are waiting for a brawl at the following locations

1. Immediate plum channel resistance line

2. Pink resistance line

3. 100 SMA resistance line

Doji supporters anticipate a halt and reversal back down to retest the lavender support zone. Bears will want to see a challenge of the milestone $1 and attempt to plummet to test the brown 200 SMA critical support line.

Good Luck and be nimble.

List of SGX Counters Exhibiting Bullish Engulfing Candlesticks Pattern

The bullish engulfing pattern is a pair of candlesticks, the first black and the second white. The size of the black candlestick is not important. The second should be a long white candlestick – the bigger it is, the more bullish. The white body must totally engulf the body of the first black candlestick. Ideally, though not necessarily, the white body would engulf the shadows as well.

After a decline, the second white candlestick begins to form when selling pressure causes the security to open below the previous close. Buyers step in after the open and push prices above the previous open for a strong finish and potential short-term reversal. Generally, the larger the white candlestick and the greater the engulfing, the more bullish the reversal. Further strength is required to provide bullish confirmation of this reversal pattern.

Amibroker Formula Language was used to create an exploration to scan for SGX stocks with Bullish Engulfing pattern. The list was sorted according to the trading volume.