Personal View on Hang Seng Index

Trendlines Analysis and Fibonacci retracement

Hang seng index started the great run from end August to peak around 32000 points in mid October. Subsequent to that, HSI corrected and broken the two lower trend lines and based on what we can see it is moving sideways at the moment. Near term support would be the recent low in mid November of 25893 and after that next support level would be around 24283. These two support levels also near to Fibonacci retracement support levels of 50% and 61.8% at 25701 and 24194.

Moving averages

Based on recent pullback, the 100 exponential moving averages EMA (red line) of HSI has provided good support level. If this is broken, 200EMA should provide very strong support as we have seen that during the August correction.

Potential head and shoulder?

For new uptrend to resume, HSI needs to move back up above 28871 and stabilize above this level before taking out 29962 and the recent high of 31958. This may not be an easy feat in the near term. It will take sometime to rebuild the stronger upward momentum.

Mixed signals indicate range bound with upward bias

Parabolic SAR - negative but getting close to turning positive

Moving averages - 13EMA below 26EMA - negative

MACD - forming higher lows and getting close to turning positive - potential signal that selling pressure is easing

What to watch out for :

1. HSI do not fall below 100EMA in the near term after that next strong support is at 200EMA. Since I can see that HSI is still very far away from 200EMA, this means that the uptrend should be intact at the moment.
2. Support levels at 25893 and 24283 should not be broken.

by Rooney Yong

Singapore Stock Market: Straits Times Index (STI)

Based on Fibonacci Retracement : STI retracing back to support level of around 3320 which coincide with fibonacci retracement level of 61.8%this level is also a 100% retracement level for the recent rebound which started on 22nd NOV Since 3320 coincides with TWO fibo retracement level, this should offer some good support levelof course nothing is 100% certain so have to watch out cos if 3320 level is broken, the next two support levels could be 3249 and 2962Based on Parabolic SAR :this indicator just turned negative two days ago…..not a good sign for nowusually parabolic SAR will stay negative from between 9 to 17 daysBased on multiple moving average (MMA) indicatorsThis is usually a medium to longer term indicator….sad to see that all short term MMA are BELOW long termm MMA so the medium to longer trend is still not good

Some people would say that MMA is a LAGGING indicator. but i dont use this as an “entry” signal but rather to give me a feel of the market so it is still useful for me

Cheers
Rooney

Singapore Exchange Limited (SGX) is pleased to announce the final changes to the minimum bids schedule for the securities market. The new schedule, which will be implemented on 24th Dec 2007, seeks to improve trading efficiency and market liquidity.

The final changes include:

1) Reducing the minimum bid sizes for securities¹ priced above $3.00;

2) Customising the minimum bid structures for Exchange Traded Funds (ETFs), bonds, debentures, loan stocks; and Hong Kong Dollar as well as Japanese Yen denominated securities traded on SGX; and

3) Widening the threshold for member firm forced orders key from the current +/- 6 bids to +/-10 bids for the main securities products²

¹ securities exclude ETFs, bonds, debentures, loan stocks and those securities traded in Japanese Yen and Hong Kong Dollar.

² main securities products exclude ETFs, bonds, debentures and loan stocks.