It’s been awhile since we updated the blog, sorry for radio silence and thanks for all your concern and checking in. We’re well just trying to get up to speed with all these change of blog address. We’re not the best at this so it took us awhile.
Well, we all know that over the weekend dow dropped close to 400 points!! What a shocker eh. Now what will happen to our STI, we might be expecting some downside movement to come in due to the drop and foresee some downside to 2844 then eventually that uptrend line which also sits nicely with the 200ma.
If there is any upside, we might see it to 2900, currently we feel that STI has more downside pressure.
It has hit our target of 2880 or rather just one point shy of 2880 at 2779 and started coming off. STI might be in a slight range bound but we might see more downside. Looking at 2848 as first support and maybe to 2820 then.
We’re looking at more upside for STI in the coming days. The last few days STI came down but wasn’t as weak and refused to come down and have a nice closing today too. With that we might take a long position and would hope for STI to move up towards 2880 in which we will re plan our position again. Our entry would be one pip above today’s high and stop loss at 2825.
STI came down to our target of 2833 and overshoot a little more to 2813. We shall now use that as our support. Currently its being resisted at the horizontal resistance of 2882. If that breaks we might see it start attacking that uptrend line and if it manage to regain its footing there then we might see it retest the high of 2960 again. Lets keep a close eye on it as S&P made new high so we want to move accordingly
STI came very close to our target of 2964 and started to retrace which we warned off in our blog. What will happen next? We drew some lines and will share more of our humble view of the market this coming thursday night with our lovely clients =) Hope to see you there.
Just an update, STI hit a day high of 2939 about 20 points away from our target. We were mentioning about the upside since 2834 and its good to take some profit along the way and now that its nearing our target its good to a little cautious now as market might have some profit taking even before it reaches the target. So our humble stance is always to take profit along the way and not to aim at the high and take all profit.
Our last post for the night before we call it a night, we hope that you have following closely to our blog and would have been in the money with these few stocks and index that we have shared. =) Remember to stick to the plan and follow through ya. Protect your profits along the way too. Don’t always aim for the highest to take profit. Take profit along the way. That works for us. Hopefully that works for you too.
Hope everyone had a good weekend and are ready for the short week ahead. We had some time to reflect over the weekend and we’ll like to share some thoughts.
Firstly, following the trend, as most would know , the trend is your friend, follow it don’t go against it. If you think like us after brexit that the market would come down but it didn’t then we might have to change our plan and follow the trend. Yup, from our blog you would sense that we were hoping for more downside. We were wrong on that and now the question is, how do we fight back. ( We fought back on singpost, jumbo and acromec) and hopefully our clients did too
Secondly, your stop loss, well, trade will go against us from time to time. When that happens, don’t hope for the best but do what is right and cut loss at your determined level, don’t keep telling yourself it will be better. Cut loss first, take a step back and then u will be calm. NEVER go into a trade without a trade plan and as the saying goes and as cliche as it may sound, IF you fail to plan, you plan to fail.
Lastly, don’t even try to take revenge ,as we all know that usually leads to much disaster. In fact, continue to plan your trade accordingly, keep calm and don’t go crazy.
We’re just sharing our humble thoughts in which we hope we will be better traders after this =)
We have attached the chart of STI , currently we can see its above the 200ma which is significant. Next resistance at 2880 and if that breaks we could eventually see 2960 in sight. Support is at 2830, then the 200ma and if that don’t hold then we might start to see it cover the gap to 2793. Lets respond to the market accordingly and we’ll update accordingly
Crazy news!! The STI is just 7 points away from friday’s high when brexit was announced. It as if Brexit didn’t happen and all it took was just two days for the market to recover back to where it started. Amazing? Crazy? Well, welcome to the stock market, where anything goes and rational thoughts goes out the window.
It might see irrational that market can just recover so fast and you might be lost by now. Well, we too have been stunned by the recovery but as we mentioned before please ensure that your stop loss is in place. We can’t and won’t get every direction right that’s why we need our stop loss in place for moments like this.
So stay calm and lets see what the chart says now
As we can see, the short term downtrend was touched and pulled back after that, the next one to look out for would be the 200ma at 2817 then finally if that holds then 2837. These are some of the resistance points we are looking at. IF the index shows weakness at these areas we might look for shorting opportunities.