STI still on a downtrend. Each time the STI rally up with the CCI at overbrought position, the market start to sell off again. STI support 2735 and 2681. Some stocks have sell setup .

The setup for all these stock are the same . 20 ma and 40 ma sloping down. CCI overbrought of +100.

Coming back to the market. I think we may still have some way to go. The support is at 2700 and 2650. I would stay sideline for the present moment. May trade the rebound if it happen. Can wait still.

Where is STI support? 2700 or 2650

The resistance is around 7.50 On top of that, it has broken a very significant uptrend line which was established in 2009. The 20 MA has flattened off and is converging towards the up sloping 40 MA, signifying the weakening of the uptrend. We may it correcting to the support at 6.50 The next support if it break below 6.50 will be at 5.40.May want consider selling on strength.

STI hit the downtrend line and turn down . You can read my previous post by clicking here–> Click HERE

Today price action is rather bearish. The gap today open below the entire bullish candlestick.

STI forming a symmetrical triangle. If the STI can break out of the consolidation , it may signal a change of the trend. However, we have NOT yet broken above the trendline. Next few days will determine the direction.

The main trading tools that I use is Moving average and CCI.
Moving Average is to find out are going for low tide to high tide or high tide to low tide.
CCI is to find out is there a short term profit-taking that we can take advantage of.
Date 14/04/2010
Time 7-9pm
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So if you are interested to come. Please register to collinseow1@yahoo.com.sg with Name , email.
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I have been spending little time on Metastock recently due to other priorities like building my remisier team. So this Christmas ,I went on overdrive on Metastock.

One of the things I did was to design a trading system which is popular in Singapore.It is call the peak and trough system. It look similar to a Darvas box so I decide to tweak Darvas box code .

On top of just giving the indicators,I also program the expert advisor which will give you the arrow when to buy and sell.It also highligh the candlestick blue when it break out of the box. When it is time to take profit it will show a red exit signal and also the candlestick will turn red.

Below are a few example of my work .

Just a update on the STI.

Today OCBC Gap Up, Open at 8.68.

My posted yesterday of OCBC trigger buy on 8.57 and Cut Loss 8.52.

The other trading strategy when stock gap up, you should sell half to take some profit. Then you turn your chart in 5 mins to monitor it until 30 mins. Once 30 mins passed, and stock keep turning down, you should sell the other half and get out of trading.

In this case, if your triggered 8.57, you sell half on 8.68 and next 30 mins you sell 8.64. That’s how you are making profit in the volatile market.