The already high oil price pushes higher and test US$66 per barrel on the last trading day of last week. It will hurt Economy worldwide because it will slowdown growth. Demand has out stripped supply and caused the spike. It will need sometime for the market to get use to the current price level.
Scanning through my watch list, retracement was all i see with no sparkle, except for the oil plays such as Keppel Corp and KS Energy. I had attached the chart of Keppel Corp below.
Recent market sentiment is expected to be bad until we get used to the current oil price or the retreat of the oil price. Do not mistake technical rebound for market reversal. It will prove to be costly. Time element in trading is also important. There are times when we simply have to go cash and wait for the buy signals favoured by good market sentiment. I suspect this period should be it. We could be in a trading range.
UTAC: Cap reduction announced. Will it break it's downtrend?
Keppel Corp, The leader in Oil play?
Ho Bee: Despite a good set of results, volume remains light
Capital Land, more retracement?
