Sunday, September 04, 2005

Nearing Resistance..break or bounce?

In his book, Livermore had mentioned his method of speculation using the line of least resistance. By the way, I'm currently reading Reminiscences Of A Stock Broker. The stuffs he wrote inside makes lots of sense. But somehow, I question it's applicability to Singapore Market. After reading so many trading books, psychology of the mass is often mentioned. Good ones will tell us to first study the general market sentiment before zooming into individual stocks. Even when we analyse individual stock, we must "feel" what the price movement and it's volume suggest. If you are able to pin point fear or greed from the chart, you are likely to get ahead. Ok, back to the books. All the books were about wall street....Americans. Here in our local bourse, we have Singaporeans. Does Singaporeans behave differently from Americans in stock market? Will our "kiasuism" be a differentiating factor? Does it makes us one step more fearful or greedy than the Americans? This warrant a thesis on the topic! Maybe a nobel prize? keke

Most of my watchlist which consist mainly of marine and property stocks move closer to the resistance line. Cap Land, hovering at 2.96 which is resistance turns support. Keppel Land had successfully breakout of resistance 3.42. Cosco. after a series of buy calls from research firms, stormed into the lead and could threaten the resistance at 2.60. Semb Marine which has been moving silently nears it's resistance at 3.04. If all the above breaks the resistance, i'm sure we will be in another bullish run. Otherwise, one of my watchout will be a retracement back into trading range once they are unable to break resistance.

Oil price has slipped nearly $2 over the weekend after profit taking and the report that only 10% of the facility in the gulf coast was damaged. Those trader who speculated base on heavier damage took their money and stayed aside. The oil price was the reason for the recent decline and lacklustre performance of STI. Now that it had gone below US$70, there is a chance of a great week ahead for us.