30 June 2008

Technical Analysis - June 30 2008


S&P500 (1,278, last week 1,318 or -3.03% w.o.w)

The daily charts continue to weaken. For weekly charts, MACD has just turned negative hook down. The MACD Hist has also turned negative. The weekly stochastics is at the lowest point and there is a possibility the index may stage a rebound during the week.
The index needs to stay above 1,280 to stay within the uptrend support line since 2003. If it fails, the index may have support at 1,250 and 1,220. If it managed to rebound, the resistance is at 1,325.

KLSE CI (1,191, last week 1,207 or - 1.3% w.ow)

The daily charts continue to weaken. The weekly MACD and MACD Hist are negative. The index has found many sellers at 1,210 and as a result faced tremendous downward pressure during last week.
The index needs to stay above 1,190 to be avoid falling off the 2004's uptrend channel. Major headwind ahead.The index is expected to trade between 1,150 and 1,210.

HangSeng (22,042, last week 22,746 or -3.1% w.o.w )

The daily charts continue to weaken. The weekly MACD and MACD Hist are negative.
Immediate support is at 21,600 and 21,000 while resistance is at 23,500. The index needs to be supported at 21,500 to avoid falling off the 2004's uptrend channel. Major headwind ahead.

Nikkei 225 (13,544, last week 13,942 or -2.90% w.ow)

The daily charts have weakened further. For weekly charts, MACD is still in a positive crossover but started to bend downwards to -195. The weekly MACD Hist is still positive.
The index has dropped off from the current short term uptrend line. Since 13,800 is broken, the immediate support is at 13,500 but the weakening of daily indicators would pressure the index to trade between 12,900 to 14,000.


* Baring Asset Management's view on Anwar's new sodomy allegation and its impact on Malaysian stocks: "Anwar makes good headlines but don't matter in the long term".

* Singapore based Jim Rogers: "Investors should avoid the dollar and buy commodities which is the best investment for this year".

* A Chinese investment fund manager won the bid to have lunch with Warren Buffett by bidding USD2.1m in the most expensive charity auction ever held on eBay.

* Siemens, the German engineering and electronics company plan to cut 17,000 mostly white-collar workers world-wide as it seek to reduce its cost base. Other recent lay offs are: Goldman Sachs, Citi, WaMu in tens of thousands, BOA 7,500, Volvo 2,000 etc. Watch out for the coming employment figures!!

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* Will the US Senate's 'End Speculation Act' which calls for an increase in margin requirements as a blunt tool to tackle price speculation be debated? Last Thursday, the House of Representatives passed a legislation ordering regulators to curb immediately excessive speculation in commodity markets.

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