Straits Times Index Archives - Page 2 of 4

March 12, 2013

Asia finds support

Japan’s Nikkei 225 Index broke through its medium-term target of 12000. Selling pressure failed to materialize and the index is headed for its long-term target of 14000*.

Nikkei 225 Index

* Target calculation: 11000 + ( 11000 – 8000 ) = 14000

India’s Sensex found support at 18800. Penetration of the declining trendline indicates a rally to 20200. Breakout would signal a primary advance to 21000*, but bearish divergence continues to warn of selling pressure. Reversal below 19000 would warn of a correction to the primary trendline at 18000.

Sensex Index

* Target calculation: 20 + ( 20 – 19 ) = 21

Singapore’s Straits Times Index continues to consolidate below resistance at 3300. Buying support at 3250 is evident from higher volume at the 3250 level. Breakout above 3300 would signal a fresh primary advance, with a long-term target of the 2007 high at 3900*.

Straits Times Index

* Target calculation: 3300 + ( 3300 – 2700 ) = 3900

Hong Kong’s Hang Seng Index correction found support at 22500. Declining 13-week Twiggs Momentum indicates selling pressure. Expect another test of 22500; failure would signal a test of the primary trendline at 21000.

* Target calculation: 22 + ( 22 – 18 ) = 26

China’s Shanghai Composite also found support, at 2250. Respect would indicate another test of resistance at 2450, while failure would indicate a down-swing to primary support at 1950/2000. Rising 13-week Twiggs Momentum suggests a primary up-trend; a trough above zero would strengthen the signal. Breakout above 2450 would confirm.
Shanghai Composite Index

* Target calculation: 2450 + ( 2450 – 2250 ) = 2650

March 5, 2013

Asia: Japan advances while India & China retreat

Japan’s Nikkei 225 Index broke its 2010 high of 11500, indicating continuation of the primary advance to 12000*. Bearish divergence on 13-week Twiggs Money Flow warns of selling pressure. Expect a correction to test the new support levels at 11000, possibly 10000.

Nikkei 225 Index

* Target calculation: 10000 + ( 10000 – 8000 ) = 12000

India’s Sensex broke support at 19000, warning of a correction to the primary trendline at 18000. The sharp fall on 13-week Twiggs Money Flow, following a bearish divergence, confirms strong selling pressure.

Sensex Index

* Target calculation: 19 + ( 19 – 18 ) = 20

Singapore’s Straits Times Index retreated from resistance at 3300. Expect support at 3200; failure would warn of a correction. Another trough above zero on 13-week Twiggs Momentum would suggest that the primary up-trend is intact. Breakout above 3300 would offer a target of the 2007 high at 3900*.

Straits Times Index

* Target calculation: 3300 + ( 3300 – 2700 ) = 3900

Hong Kong’s Hang Seng Index correction is headed for a test of secondary support at 22000 but is still some way above the primary trendline — and support — at 21000. A 13-week Twiggs Momentum trough above zero would suggest a healthy primary up-trend.

* Target calculation: 22 + ( 22 – 18 ) = 26

China’s Shanghai Composite is also on the retreat, testing secondary support at 2250. Failure would indicate a down-swing to primary support at 1950/2000. Reversal of 13-week Twiggs Momentum trough below zero would warn of another primary decline, with a long-term target of 1500*.
Shanghai Composite Index

* Target calculation: 2000 – ( 2500 – 2000 ) = 1500

February 25, 2013

Asia: India retreats while Japan and Singapore advance

India’s Sensex is headed for a test of support at 19000. Breach of the secondary trendline already warns of a correction to the primary trendline around 18000. Bearish divergence on 13-week Twiggs Money Flow, followed by reversal below zero, indicates strong selling pressure.

Sensex Index

* Target calculation: 19 + ( 19 – 18 ) = 20

Singapore’s Straits Times Index is consolidating in a narrow range below 3300 — a bullish sign — and 21-day Twiggs Money Flow oscillating above zero indicates buying pressure. Breakout above 3300 would signal an advance to the 2007 high at 3900*. Reversal below 3250 is unlikely but would warn of a correction.

Straits Times Index

* Target calculation: 3300 + ( 3300 – 2700 ) = 3900

Japan’s Nikkei 225 Index is again testing its 2010 high of 11500. Reversal below 11000 would suggest a correction to 10000, while breakout would offer an initial target of 12000*.

Nikkei 225 Index

* Target calculation: 10000 + ( 10000 – 8000 ) = 12000

February 11, 2013

Asia: China near 1 year high

China’s Shanghai Composite Index is testing resistance at its 2012 high of 2460 on the daily chart. Rising 21-day Twiggs Money Flow indicates medium-term buying pressure. Breakout is likely and would signal a primary up-trend, but the index is overdue for a correction and a higher trough is required to confirm the reversal.

Shanghai Composite Index

Hong Kong’s Hang Seng index already indicates a primary up-trend. Reversal below 23000, however, would warn of a correction.

Shanghai Composite Index

India’s Sensex is testing its secondary rising trendline, while declining 13-week Twiggs Money Flow suggests selling pressure. Breach of the trendline would indicate a correction to test 18000/18200.

Sensex Index

* Target calculation: 19 + ( 19 – 18 ) = 20

Singapore’s Straits Times Index is testing resistance at 3300. Rising 63-day Twiggs Momentum suggests continuation of the primary up-trend. Breakout would signal an advance to 3900*.

* Target calculation: 3300 + ( 3300 – 2700 ) = 3900

Japan’s Nikkei 225 Index retreated from its 2010 high of 11500. Reversal below 11000 would suggest a correction to 10000. Respect of support would indicate a breakout above 11500 — and a fresh primary advance.

Nikkei 225 Index

* Target calculation: 11000 + ( 11000 – 8000 ) = 14000

February 3, 2013

Asia rallies

China’s Shanghai Composite Index is headed for a test of resistance at 2500. Crossover of 63-day Twiggs Momentum above zero — and breach of the declining trendline — suggest a primary up-trend. Breakout above 2500 would strengthen the signal. But only a higher trough followed by a new high on the index chart would confirm.

Shanghai Composite Index

India’s Sensex retreated below 20000, while declining 13-week Twiggs Money Flow indicates medium-term selling pressure. Expect a correction to test support at 19000 but long-term buying pressure should ensure that the up-trend continues.

Sensex Index

* Target calculation: 19 + ( 19 – 18 ) = 20

Singapore’s Straits Times Index is testing resistance at 3300. Rising 63-day Twiggs Momentum suggests continuation of the primary up-trend. Breakout would signal an advance to 3900*.

* Target calculation: 3300 + ( 3300 – 2700 ) = 3900

Japan’s Nikkei 225 Index is headed for its 2010 high at 11500. A spike in 13-week Twiggs Money Flow indicates strong buying pressure. Breakout is likely and would suggest a primary advance to 14500*.

Nikkei 225 Index

* Target calculation: 11000 + ( 11000 – 8000 ) = 14000

January 17, 2013

Stocks: The year ahead

A quick recap of the quarterly chart overview from December 2012:

The S&P 500 is headed for a test of its 2000/2007 high at 1550. Declining 63-day Twiggs Momentum and a lackluster economy suggest that resistance is unlikely to be broken. Breach of the rising trendline would indicate a test of support at 1100.

S&P 500 Index

Canada’s TSX Composite Index is gaining momentum. Follow-through above 13000 would indicate another test of 15000.

Apple

Germany’s DAX threatens a breakout above 8000. Follow-through above 8200 would confirm a strong primary advance.

DAX Index

The FTSE 100 broke resistance at 6000, suggesting an advance to 7000.

FTSE 100 Index

India’s Sensex is testing resistance at 21000. Rising momentum indicates breakout is likely, heralding a fresh primary advance.

BSE Sensex Index

Singapore’s Straits Times Index lags behind, but breakout above 3300 is likely and would indicate an advance to 3900.

Apple

The Shanghai Composite is headed for a re-test of long-term support at 1800/1750. Rising momentum suggests that a bottom will form at this level. Recovery above 2500 and/or the declining trendline would strengthen the signal.

Shanghai Composite Index

The ASX 200 is headed for a test of resistance at 5000, supported by rising 63-day Twiggs Momentum. Breakout would signal an advance to 6000, but weakness in China or the US may delay this for some time.

ASX 200 Index

June 4, 2012

Hong Kong, India and Singapore

Dow Jones Hong Kong Index is headed for primary support at 360. Failure would confirm the primary down-trend signaled by 63-day Twiggs Momentum below zero.

Straits Times Index

India’s Sensex is testing support at 16000/15800. Failure would mean another test of primary support at 15000/15200. Reversal of 13-week Twiggs Money Flow below zero indicates selling pressure. Failure of primary support would offer a target of 12000*.

BSE Sensex Index

* Target calculation: 15 – ( 18 − 15 ) = 12

Dow Jones Singapore Index broke medium-term support at 222, indicating a test of primary support at 208/210. Reversal of 13-week Twiggs Money Flow below zero indicates selling pressure. Failure of primary support would offer a target of 190*.

Straits Times Index

* Target calculation: 210 – ( 230 − 210 ) = 190

May 31, 2012

India & Singapore

The BSE Sensex found medium-term support at 16000/15800 but reversal of 13-week Twiggs Money Flow below zero warns of further selling pressure. Expect another test of primary support at 15000/15200. Failure would offer a target of 12000*.

BSE Sensex Index

* Target calculation: 15 – ( 18 − 15 ) = 12

With almost half of foreign bank funding sourced from Europe, India is experiencing significant tightening of external finance and hence domestic investment.

Singapore’s Straits Times Index is testing medium-term support at 2750. Failure would test primary support at 2600. Reversal of 63-day Twiggs Momentum below zero warns of a strong primary down-trend. Recovery above 2900 is unlikely but would indicate continuation of the primary up-trend.

Straits Times Index

* Target calculation: 2600 – ( 2900 − 2600 ) = 2300

May 22, 2012

India & Singapore

India’s Sensex found short-term support at 16000, but 21-day Twiggs Money Flow below zero indicates continued selling pressure. Breach of 16000 would test the band of primary support at 15000.

BSE Sensex Index

The Nifty similarly found short-term support at 4800, but 63-day Twiggs Momentum below zero warns of a continuing primary down-trend. Failure of the 4800 level would test primary support at 4500.

NSE Nifty Index

Dow Jones Singapore Index found short-term support at 222 — the 61.8% Fibonacci level. Expect a rally to test 230 but respect would warn of a decline to test primary support at 203. 63-Day Twiggs Momentum crossed below zero, warning of a primary down-trend.

Dow Jones Singapore Index

May 15, 2012

India & Singapore

India’s Sensex broke the 61.8% Fibonacci level at 16500, indicating a test of primary support at 15000. Reversal of 13-week Twiggs Money Flow below zero warns of strong selling pressure. Failure of support at 15000 would offer a target of 12000*.

BSE Sensex Index

* Target calculation: 15 – ( 18 – 15 ) = 12

The Nifty is similarly headed for a test of primary support at 4500. Failure would confirm the primary down-trend indicated by 63-day Twiggs Momentum reversal below zero.

NSE Nifty Index

Singapore’s Straits Times Index broke medium-term support at 2900. The primary trend is still up but expect a test of support at the rising trendline (2800). Failure of support and reversal of 63-day Twiggs Momentum below zero would both warn of a primary down-trend.

Singapore Straits Times Index

Dow Jones Singapore Index is similarly testing medium-term support at 230. Failure would indicate a test of the primary level at 210. Declining 13-week Twiggs Money Flow warns of medium-term selling pressure; reversal below zero would have long-term implications.

Dow Jones Singapore Index