Cosco - Poised for a breakup

Cosco is likely to have more upside this coming week.  It's weekly has just formed a Morning Star pattern (it has formed a similar Morning Star pattern on 5 Jan this year which subsequently propelled it from 0.435 to a high of 0.525 over the next 2 weeks+ (a 20% move).  Will be interesting to watch if this move plays out in the coming weeks.



Cosco weekly



Morning Star Pattern - Bullish

Candliesticks - Morning and Evening Star Patterns

Morning and Evening Star patterns are popular patterns to trade as the probability of success is rather high.  However do note that candlestick patterns are best for short term prediction and I would not rely on it for predicting a long term trend.

A Morning Star pattern is bullish and a follow through to more upside is expected over the next few candles while an Evening Star pattern is bearish and we expect more downside to come over the next few candles.

There are a lot of info about these patterns.  You may like to read more about them here:  https://www.babypips.com/learn/forex/triple-candlestick-patterns

SingPost - on the road to recovery

Singpost caught my eyes recently as it has formed an Adam & Eve bullish reversal pattern.

A recovery to around 1.70 is plausible for a start, if it is able to rise above 1.70, I will be looking around 2.00-2.10 next.  However, nothing is guaranteed, trail your exits. 

 

Singpost - Adam & Eve (bullish)



Some STI Stocks Coming into Short Term Support levels

There are quite a number now and here are just a few.  However it is likely to be still volatile in the next few weeks. 



Keppel Reit

Keppel Corp

UOB

 

Frasers Property

 

 

 

A Look at S&P and Crude

The US market (Dow Jones, S&P and Nasdaq) have been seeing some buying coming in on Friday night and it looks like we could be heading for some rebound next.  However, whether this is the final low remains to be seen.

A more concrete confirmation that a low has been in place is when either Scenario A or B (as illustrated in the chart below) happens.




S&P



Crude Oil - bottoming yet?

The Markets Had a Big Sell Off, what's next?

The free fall in the markets that started a week ago on Friday (2 Feb 2018) which cumulated to a low on Tues (6 Feb 2019) was a rather huge plunge of 12% for the US markets and 7.5% for STI.

For a fall of this magnitude, I am cautious that the "perma" US uptrend has been disrupted and we can expect volatility ahead. I am still expecting a rally/rebound of blue chips in the coming days and where the next rally ends will give a clearer picture of whether what is happening now is just a much needed correction or a sign that the market is getting toppish.

The market could be finding some support now and I am looking for possible short term upside in the charts below. However, should any of these significant supports be breached, then I will cut and stay out until the dust settles.

(click on the charts for a larger view)



S&P - Finding support at 200 Day Moving Average?

 Straits Times Index

OCBC Bank

 

SATS

On the Flip side, not all stocks are equal.  Some stocks like YZJ have confirmed a bearish Head and Shoulders formation and could be heading lower in the coming days. 

 



 

 YZJ

Disclaimer:

Any view, analysis or opinions expressed here do not constitute an investment advice nor inducement to trade. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of this information. Investments are subject to investment risks including possible loss of the principal amount invested.