Technical Analysis - May 12 2008

S&P500 Chart (1,388, last week 1,414)

The daily charts has started to weaken. For weekly charts, MACD is still on positive cross over and it has now improved to -16 from -19 a week ago. The MACD Hist is positive. The DMI (+ & -) is weakening with no hook up and the ADX seems to deteriorated a little (ie from 26 a week ago to 24). The weekly stochastic is losing momentum and it is slowing down from a high 97 last week and is currently 85. The index needs to stay above 1,380 to maintain its uptrend. The index is expected to trade between 1,370 and 1,430.

KLSE CI (1,285, last week 1,271)

The daily charts has continued to deteriorate. The daily MACD has weakened and threatening to cross downwards again. The daily DMI (+ & -) has a positive hook up but is weak while the ADX has worsened(now 17 from 20 a weak ago). Weekly indicators are still showing downward pressure.To make matters worse, the weekly stochastic shows a losing momentum of 80 from a high 90 a week ago- ie profit taking continues setting in. The index has to make sure it stays above the 1,285 to avoid falling out of the uptrend channel created since March this year. The index is expected to trade between 1,230 and 1,314.

HangSeng (26,241, last week 25,063)

The daily charts are weakening. The weekly DMI (+ & -) has a slight negative hook down and the ADX is at 20. The MACD has crossed positively over at -138 from -190 a week ago and MACD Hist is also positive. However, there may be profit taking as the weekly stochastic oscillators momentum is weakening at 83 (a week ago was 95). Immediate supports are 24,000 while resistance is at 26,000.

Nikkei 225 (13,655, last week 14,049)

The daily charts are weakening again. For weekly charts, MACD has just turned positive slightly at -495 from -500 a week ago and the MACD Hist is positive. The DMI (+ & -) are improving but no cross over yet. The ADX has weakened at 32 but still indicating the strong trend is still intact. Weekly stochastic is slowing down in momentum at 82 from 100 a week ago as profit taking setting in. Resistance is seen as 14,200 while immediate supports at 13,450 and 12,900.


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