01 November 2018

Thursday, November 1, 2018

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In my previous email, I have mentioned that STI was oversold. And with that, STI came back up and closed at 3018, breaking past the pyschological mark of 3000, and the gap at 3030. At the point of writing, STI is now at 3043, up 25 points. Now the previous support line of 3050 has turned into a resistance line.

Likewise this morning OCBC came up strongly due to good reports with better profits and growth. Details below.

Traders may want to sell on rally to lock in profits. Investors will be rather unwilling to buy at this level, probably only after 3 - 5 days to allow traders exit their short term positions first. Once the traders' exit, then the price may be lower (or higher) for investors' entry for future rally, hopefully.

Chart reading is an art. It is a combination of observations from various sources and guess work of the upcoming possibilities.

If all else fails, or unfamiliar with candle charts or whatnots, then go by the old school way. That is using price as a reference and acting purely on it; buy when price is low, sell when price is high. When this is done consistently, profits will grow eventually.

My 2 cents. Feel free to share thoughts with me. Once again, thank you all for your kind support.