4 counters

Another down day for the STI as it closed just a few points above the 2,700 support.

Golden Agriculture closed at 50c which I've identified earlier as a critical support.  The black candle day took place with lower volume compared to the last session.  Price action formed a black inverted hammer which, together with the white inverted hammer, are considered possible reversal signals.  This has to take place after a series of down days which is the case here.  We will need confirmation tomorrow.  If the decline continues, the rising 100dMA provides near term support at 48c.

Healthway Medical closed at 17c, forming a dragonfly doji which is usually interpreted as a bullish candlestick.  However, this took place on the back of much reduced volume and a declining MFI which hit 50% today.  The buying momentum is broken but the declining MFI also gives more room for price to move upwards in the event of a reversal.

Q&M Dental is seeing its price retreat, closing at 49.5c, down from the lofty 60c not so long ago on the first trading day of 2010.  It should retreat.  I am not even looking at the charts.  Fundamentally, at 49.5c, it is still very expensive.

Saizen REIT closed at 15.5c, the support level provided by the 50dMA.  Both yesterday and todays' black candles were accompanied by relatively low volume. Rising 100dMA at 15c should limit downside.  15c is also a many times tested candlestick support and resistance level.  I have put in my buy queues.

STI and 3 counters

Asian markets made huge retreats today. HSI and STI are down by 2.38% and 2.54% respectively. The Shanghai Composite is down 2.42% while Taiwan is down by a whopping 3.48%! European markets are all in the red right at this moment.

Where are the supports for the STI? I identified two levels of support for the STI in a previous post. With today's close at 2,740, we are sitting right on the first level of support. Please see:. STI: How low can it go?

With the retreat in the STI happening with such magnitude and strength today, as could be seen in the high trading volume, the next support which is a band between 2,680 to 2,700 could be tested next.

Healthway Medical started the day at 18c only to touch a low of 16.5c before closing at 17c. MFI is declining which suggests that buying momentum is weakening. Price action is directionless at the moment at best.

Golden Agriculture closed at 50.5c as it crashed through the supports at 51.5c and 51c. My overnight buy queues at those levels were filled. The next support level is at 50c, a many times tested candlestick resistance turned support. This support level is critical. . We might see a whipsaw if this support level holds. The rising 100dMA is at 48c.

Saizen REIT's price action formed a solid black candle as it closed at 16c, below the rising 20dMA. My overnight buy queue at 16c was filled. The rising 50dMA will provide near term support at 15.5c next. The pullback is on relatively low volume with. the MFI declining to 50%. The fundamentals have not changed and I will accumulate at the next support level.