This article was posted on remisier Ernest Lim's blog, http://www.ernestlim15.blogspot.com/, last night (Saturday) and is reproduced with permission.
STI closed almost flat for the week. What lies ahead?
The S&P 500 jumped 2.2% higher for the week on the back of better-than-expected U.S. jobs report. And at home, the STI has surged 272 points, or 10.3%, in the year to date. So, what lies ahead?
For the avoidance of any doubt, with regard to the two stocks below, I am not saying or implying that they will definitely rise or fall. I am just stating my observations on China Animal’s interesting sell queues and Kreuz's potential bullish technical setup.
a) China Animal Healthcare: This stock remain at $0.240 – 0.255 level despite the market rally. For readers who monitor this stock, you would probably be aware that there seems to be large sell queues between 0.245 – 0.270 (+/- one level).
These sell queues have amounted to 6m to 10m shares daily since the start of January. I think that if there really is a fund or substantial shareholder which has so many shares outstanding and would like to exit China Animal, they (being sophisticated investors / traders) are unlikely to put so much in the sell queue as it defeats their purpose of exiting.
b) Kreuz: Depending on how one sees it (charts are indeed subjective), Kreuz is in the midst of breaking out or has just broken out of a double or triple bottom formation. This is a potentially bullish formation. Personally, I think if it can breach $0.370 convincingly, this may set the stage for a potential upward move to around $0.41 – $0.45.
a) Greek debt talks regarding the second bailout and the bond swap deal are likely to come into focus. Greece Finance Minister Venizelos said he would speak on Saturday afternoon by teleconference with the other eurozone finance ministers and they would convene a meeting on Wed (instead of the originally scheduled Mon) to discuss and (hopefully) wrap up the talks;
Bloomberg reported last Friday that many market strategists from the big banks have turned positive. Readers should take a read to get a balanced view.
To add to the list of reasons, according to Washington Post, Israel is likely to attack Iran in April – June if sanctions don't achieve the desired goal of stopping Iran’s military nuclear program. Another uncertainty in the making…
Furthermore, it is extremely important to bear in mind that the market outlook is never static. It can change suddenly - some events that impact markets can happen as quickly as overnight.
STI supports and resistances are:
*Supports and resistances are not static levels. They may be subject to change daily.
Recent story: CAH delisting offer to be 'attractive', INDOFOOD AGRI target lowered, STX OSV 'cheap'