The STI

STI has broken out of the orange support channel here
http://wealthbuch.blogspot.com/2009/08/downtrend-channel-on-sti.html

I believe the support line would have turned resistance (hopefully wrong?). From charting, tomorrow's trading range could be between 2640 ~ 2684.

Using the pivot system calculations as well:

Pivot	2665.86
R1	2683.68		S1	2630.94
R2	2718.6		S2	2613.12
R3	2736.42		S3	2578.2

Combining, 2684 coincides as resistance.
2630~2640 coincides as support, with the average at 2635.


Final conclusion is that STI would likely trade between 2635 to 2684.
The next resistance after 2684 is at 2700
So far, I can't identify any support yet right below 2630. However, I don't expect this value to be broken at all tomorrow because other than 2 channel supports, the 5 day EMA is coming up to support STI again as well.

Would I be wrong? It doesn't really matter to me. Nothing better to do mah :D

STI is getting interesting

STI finally touched the magic 50% retracement number at 268x. Seems like my expected range for STI differed by about 5 points on the upside and downside yesterday :(

How will it go from here? That's really a million dollars question.

With the new experimental pivot system that uses the previous day's close, day high and day low (and which I'm trying to do some tweaking), the following calculations are made for tomorrow:

Pivot	2665.697
R1	2698.413		S1	2648.923
R2	2715.187		S2	2616.207
R3	2747.903		S3	2599.433

From my chart yesterday, today's action was still within the confines of the green upchannel resistance line and the orange uptrend support line.

As of tomorrow, 50% retracement levels 2684 has come into the picture to play. The 5 day EMA now forms a support as well for STI. And as noted yesterday, the blue resistance turned support line came to support STI as well today at 2632.

From my chart yesterday, using channels, my first support for tomorrow would be 2660, followed by 2634.
Resistance expected at 2684, then 2690, 2705 and 2712. With so many resistances to break through tomorrow, I don't expect STI to go past 2712.

Will STI surpass all expectations? We will have to wait till 5pm tomorrow to find out :)

Downtrend channel on STI

With some sharing from Milamberz in CNA Market Talk Forum, I managed to identify some possible downtrend channels, and charted them in the chart below.



Ok, zooming in on the targeted part.



It appears to me that STI could have just broken another of the down channel resistance, and the line has become a resistance turned support line. To make things more interesting, it appears that the 5 day EMA has come to support STI.

Monday would be interesting as it is the cross of 2 support lines, possibly forming a strong support at 2635 for STI should it comes down.

First resistance at 2673 followed by the long awaited 2684.



In addition, I have learned basic pivot point analysis from the net recently. From what I have read, the pivot point for the next trading day is calculated by taking the average of the close, day high and day low of the previous trading day.

The official calculations for Monday are
Pivot: 2651

R1	2667.357		S1	2643.137
R2	2675.513		S2	2627.073
R3	2691.577		S3	2618.917

Comparing with my chart and coupled with the pivot calculations, 2635 ~ 2643 could signify good support. 2673~2675 signifies good resistance.

It would be interesting to see if STI can break past and defy my so far basic TA logic.

In short, expected trading range for STI on Monday: 2635 ~ 2673

Credit Card Applications Rejected.... Huh?

Wow. First, Maybank, then now HSBC. Both rejected my applications for their credit cards. Only POSB accepted me for the Everyday Card.

Is my credit really that bad? Let's see. I have worked 1 year 2 months.

My debt:
19k SGD of CPF education loan

My current assets as of today:
20k SGD in Phillips Money Market Fund
63k SGD in equities
5.5k SGD in unit trusts
4k in bank

My income, excluding ang bao money from tuition, easily exceeds their 30k SGD p.a. requirements.

Yet a fellow graduate from the same year, earning the same amount, working in the same company as me, was accepted for the credit card. Like huh? No reasons given, nothing.

Sometimes I wonder. Could it be that the workers in the bank just grab a few of the applications and declare as unsuccessful without checking with the Credit Bureau? Why the need to spend effort to check when one can simply just declare an application successful without giving any reasons? For HSBC, I sent the application on the late morning of 30th July via online form + fax. And I receive the rejection letter dated 30th July! Like wow! Their speed of processing is sooooooooooo fast.

I guess I will not be looking at applying for credit cards with HSBC or Maybank anytime soon. Not that such banks will mind a small fish like me.