Chart Source: Poemsview 4th Feb 2018
As Dow Jones took a nosedive of 666 points on friday night we would expect some negative sentiments to follow through to Asia side.
As such we have come up with a few charts and drawn some support levels that might hold. We know that traders might panic as the sell down on friday night was about 2.54% which could trigger some margin calls too.
Remember to remain calm and as usual and as naggy as we might sound always have your stop loss in place , that way you won’t be taken by surprise losses. Our protective stops are always in place too.
So looking at our Straits Times Index (STI) it has actually broken down from our short term uptrend support line and we might see a pullback to 3472 then 3440 area. We find a healthy pullback is good as it allows investors to come back to the market. So be patient and wait for the dusk to settle before considering long positions.
Cosco after having a nice uptrend and capturing it since 0.425 might also start seeing a pullback. It has also broken down from our uptrend support line and could see a pullback to 0.46 first.
YZJ Shipbldg has been trying to break back into its uptrend support line but doesn’t seem to be able to. Since its Stellar performance from 1.51 a pull back would be deemed healthy for us. The support at 1.57 might not hold and we could see 1.50 as our first support and then 1.48 we’ll see how it goes from there.
Sembcorp had a very good run on Friday but negative sentiments could flow through and some pullback to 3.48 then to 3.43 could be on the cards.
Chip Eng Seng had a nice run up since 0.955 when we mentioned it and hitting a high of 1.07. Since then it can’t seem to move higher and it could test the first uptrend support which might not hold so we’ll be using the 50 days moving average as our good support.
We hope all have your trade plans in place. Have a blessed week ahead.