Charts in brief: 7 May 10.

Due to a suspected trading error, the US market was sent spiralling down 10 per cent at one stage and recovered to close the session at "just" more than 3 per cent down on Thursday. I can imagine the panic and the horror that shockwaved through the markets.

The technical rebound that quite a few amateur and professional chartists, independent and otherwise, opined would materialise yesterday for the Singapore market did not even get a chance.

STI drops 0.7% to 2,821.11 at closing
Friday, 07 May 2010

© 2010 - The Edge Singapore

Healthway Medical: Announced a dividend of 0.12c and that sent the share price up 1c to close at 15.5c, the resistance provided by the 100dMA. This up day was not achieved on high volume. Not convincing. The MACD has turned up but still remains in negative territory.  MFI has turned up from the oversold region.  OBV has turned up too. Personally, I would sell at resistance. 15.5c is a fair price to reduce exposure. If the price rebounds to 16.5c, even better. The 20dMA is declining and looks set to form a dead cross with the 100dMA.

CapitaMalls Asia: A white spinning top and I am still hoping to reduce exposure at resistance. Might have to lower my expectations as the 20dMA declines rapidly. Would it rebound to $2.10? Maybe.

Courage Marine: Guess what.  The BDI has exceeded 3,400 yesterday.  Nice. Courage Marine sank below support yesterday and closed at 19c despite this fundamentally positive development. If it continues to decline in price to approximate 17.5c, I would be sorely tempted to add to my position. A possible triple bottom in the making then?

Golden Agriculture: MACD continues to decline in negative territory. Candlestick suggests a possible reversal signal. Resistance at 55.5c and 58c. I might sell some of my remaining stocks if a rebound takes place.

SPH: Started the day below the 100dMA but ended the day with a nice white candle. A rebound might send this counter through the immediate resistance at $3.90. A chance to offload some shares, perhaps.

FSL Trust: OBV's gradient is turning gentler. The sell off is ameliorating. MFI has gone flat in the oversold region. That the sell off has been extreme could be seen from how the candles formed in the last three days were all beyond the lower limits of the Bollinger bands.  A black hammer formed in the last session. A rebound on the way? Perhaps. If it happens, sell at resistance? That would be consistent with my practice.

Stocks slide anew, but it's still not a correction
Seth Sutel, AP Business Writer, On Friday May 7, 2010, 8:06 pm

NEW YORK (AP) -- The stock market's wild ride may not be over yet.

The Dow Jones industrials whipsawed again Friday, a day after their largest one-day plunge. The average was down as much as 279 points in the morning, went briefly into the black around lunchtime, then ended with a loss of 139....

...The week's losses would put the market about well toward what analysts call a correction, usually defined as a drop of between 10 percent and 20 percent following a sustained rise. The Dow is now 7.4 percent off its recent high of 11,205.03 reached on April 26. The S&P 500 is down 8.7 percent from its recent high of 1,217.28 reached April 23...
 
Read full article here.
 
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