22 December 2008

Technical Analysis - December 22 2008


S&P500 (888, last week 880 or +0.9% w.o.w )

The daily indicators continued to register uptrend. For the weekly readings, the indicators are improving slowly and the MACD is continuing to move upwards but no positive crossover yet. The weekly Parabolic SAR is also not positive yet. The uptrend will be enforced further if the daily/weekly ADX and DMIs (+ve and –ve) were to turn bullish too, so far still moving towards it only. Expect some selling pressure this week as evident from the daily stochastic oscillator. Support is around 850 and resistance at 960.

KLSE CI (876, last week 852 or +2.82% w.ow)

The daily indicators improved further during the week. The daily indicators of Parabolic Sar, ADX and DMI (+ve and –ve) in fact just turned positive too. As indicated last week, there is a likelihood the index will be under pressure again as evident from the high daily stochastic oscillator. The weekly charts have improved and the MACD and Parabolic SAR has just crossed over positively. The uptrend will be enforced further if the weekly ADX and DMIs (+ve and –ve) were to turn bullish too, so far still moving towards it only. The index is expected to trade between 835 and 900.

HangSeng (15,128, last week 14,758 or +2.51% w.o.w )

Perhaps still one of the best looking indices chart in the world now, the daily indicators are doing well and strong. The daily MACD in particular is above 0 level showing further improvement. It would be interesting to see if the daily ADX and DMI indicators can show positive uptrend soon; a position it last register in late July. The weekly charts is also doing well, especially the MACD which had a positive crossover during the week. The weekly Parabolic SAR is also bullish. Support is seen at 14,000 and resistance at 15,500 and 16,500

Nikkei 225 (8,589, last week 8,236 or +4.28% w.ow)

The daily indicators continued to improved further during the week. It would be bullish for the index to see if the daily ADX and DMI indicators can show positive uptrend soon. The weekly charts are improving with the MACD attempting to cross over. The Parabolic SAR has just turned bullish too. The index is expected to trade between 7,500 and 9,000.


* Bloomberg: US throws lifeline to Detroit as it pledged on a USD13.4b rescue plan.

* AP: Banks that are getting taxpayer bailouts awarded their top executives nearly USD1.6b in salaries, bonus and other benefits last year.

* ChinaDaily: China's forex reserves down to USD1.89T in October.(their first monthly fall since December 2003).

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