China stocks tumble causes ripples (September Effect)

Shanghai Stock Exchange (SSE) dropped 6.7% to 2,697.70 breaking the support level 2784 points.

Hong Kong's HSI lost 1.8%
Germany's DAX fell 0.7%
France's CAC down 0.6%
London Stock Exchange (Closed for public holiday)
Tokyo's Nikkei lost 0.4%

The ripples been sent throughout markets in Europe and US, with Wall Street futures opening lower. Dow industrial futures -65points, and S&P 500 futures down with 5.9%.

Fears arise on the capability of China to sustain stimulus-fed growth rates and the global economic recovery would not last.

Is it the beginning of new phase - September Effect ?

Astro Uptrending ...

Immediate resistance level at RM3.50.

It needs to take out this resistance before it's able to take the next resistance level at RM3.68.

Strong buy-in and volume are definite drivers needed to break RM3.50 level.

If the rally momentum is quite significant to break both levels RM3.50 and RM3.68, the next resistance level will be around RM4.11.

Rally Waning ?

Since DJIA made a great run on 21 Aug breaking it's strong resistance level 9406 points, the rally momentum on the following week is less significant.

Same been observed at Shanghai Stock Exchange after it's bullish reversal on the same day and it's been trading with a range bound the whole week after that.

On long term trend, DJIA formed an uptrend channel with the possibility of hitting 10,000 points some time this year or early 2010. However, for short term a possible correction is anticipated.

Is the anticipation of correction in the near future causes last week market lackluster ?

Resorts World at Sentosa

Recently TheEdge Malaysia published an interesting article relating to Resorts World at Sentosa (RWS) on August 24, 2009 titled "Genting Singapore's rise draws scepticism". There are few points that captured my attention, as follows :

1. The article commented that the expectations for Genting to fulfil or exceed are strong as it will enjoy good government support and it's Universal Studios theme park is one of it's kind theme park available within Southeast Asian region.

2. "Singapore strategically located, with 35 million people arriving at Changi Airport yearly, while it is also in the catchment area of 700 million people living within a five-hour flight distance"

3. RWS been built to target different market from Marina Bay Sands (MBS), A large proportion of families will be RWS main target market whereby MBS will serves mainly business visitors and travellers in meeting, incentives, conventions and exhibitions (MICE) sector.

With that, some information been gathered on the visitors arrival for holiday in Singapore over the years (from 1999 to 2008) mainly focus on Asian's visitor. These information provides an insight that substantiate the above statements.

Except for the SARS Crisis (Year 2003), the visitors arrival to Singapore has been growing uptrend coming from different parts of Asian region.

Since 9/11 incident, travel to US and Europe have been a hassle for many tourists coming from Asian. Recently, a famous Asian Bollywood star, Shah Rukh Khan had an unpleasant reception at the Immigration counter upon his arrival at United States and created a huge uproar back in India.

With the growing number of middle class in all parts of Asian region and higher income to spend, they would prefer a friendly destination for holidays together with their families. If you can't visit Universal Studios in US, there is another alternative location with shorter flight distance.

Sources :
(a) Singapore Tourism Board
(b) TheEdge Malaysia article titled "Genting Singapore's rise draws scepticism" on August 24, 2009 publication.

Astro is back ?

Astro is back to it's support level of RM3.26/RM3.27 after early last week correction.

Strong buy-in together with price moving higher than RM3.35 will support rally momentum.

KNM fortress still in tact.

As of last Friday (21 Aug), KNM stock price still closes above RM0.75 level.

It's has been trading within the range of RM0.75 to RM0.80 for the whole week, waiting for interesting news to break away from it's trading range.

Based on "New rally in the making next week ?" write up, both DJIA and SSE indexes made an important progress of last Friday (21 Aug). Also, oil price made a new high for 2009.

With these good news coming on board, watch out for possible uptrend break out this week. Strong buy-in with price moving above RM0.82 would confirm the rally momentum.

New rally in the making next week ?

Both indexes (DJIA and SSE) made great performance towards the end of last week.

DJIA made great run on last Friday (21 Aug) with gain of 158 points, breaking it's strong resistance level 9406 points.

Also, Shanghai Stock Exchange made a confirmed bullish reversal on Friday.
Best part the reversal occurred at it's strong support level 2784.

Early of the week, there was a shock around the world and most of indexes undergo correction phase.

Questions:

1) Does the correction phase ends ?
2) Is it the beginning of new rally phase ?

KNM - Still holding the fortress

Closing price still holding at support level RM0.75.

Watch out for possible break out at resistance region between RM0.78 and RM0.80.
To sustain the break out momentum, requires strong buy-in.

If strong selling occur with price moving downtrend breaking support level RM0.75, a new story begins.

KNM - New Rally ?

After an exciting event, it's price closes higher than yesterday's opening price. The price rebounded from support level RM0.75 and closes at RM0.79

For the rally to continue, it needs to break above RM0.82 level or at least maintain it's closing above RM0.79. A strong buy-in needed to support the rally momentum.

Astro - Opportunity ?

Currently the price moving close to support level RM3.26 with bullish pattern formed on Friday (14Aug). An opportunity for trader to seize the chance to make some gains.

If price moves above RM3.34 with strong buy-in will be good confirmation to trade.

KNM - Kamikaze ?

It's still holding above support level @ RM0.79.

Briefly touched RM0.79 yesterday but bounced back to close at RM0.795.

Bullish trend is possible if it's breaks above RM0.82 with strong support
from buyers.

Price closes below RM0.79 with strong selling, it's time to make the decision - to hold or sell.

Sealink Trending Up

Since July, Sealink has been making progress trending upward - Bullish trend.

2 days ago it's gap up it's resistance level RM0.795.
It's has broken some resistance level during it's uptrend.

However, yesterday and today trading still unable to take out the new resistance
level RM0.83. Another ascending triangle forming.

Will it be able to break the triangle formation in the next few days ?

DreamGate - New High for 2009

Bravo !!

Breaks it's resistance level @ RM0.205 and makes new high for this year. At the end of trading hour, it closes at RM0.215.

Both indicators MACD and Stochastics show bullish trend.
Also, volume hits the highest level at 41 million shares.

All show bullish trend.

Caution -
1. Those who make these trade few days or weeks ago don't forget to place stop-loss. If the price do go up the next day or next few days, make sure a trailing stop-loss in place.
2. Those who miss out the opportunity keep an eye on Friday (13 Aug) activities make sure there is strong buy-in to sustain the bullish trend.

Revisit - KNM is back ?

This is the chart at the end of trading today and revisit my analysis earlier today.
Price trend still holding up above the strong support level (RM0.79)

"Bullish Harami" formation. Possible bullish reversal in the making.
Stochastics indicator also shows signal hooking up.

But, further confirmation is required.

May consider to trade these counter if the price breaks above RM0.84.
It needs to take out the high of today and yesterday candles.

Keep an eye on the support level @ RM0.79.

KNM is back ?

Today KNM is back rallying.
Open @ RM0.81 and close @ RM0.82 during lunchtime.

Will this be an opportunity for trader to make a profit in trading ?
Or, is it a trap ?

Keep an eye on the new supporting level at RM0.79.
A very powerful fibo support level.

Yesterday, KNM reached it's lowest intraday at RM0.795 level.
Slightly above the power fibo level (RM0.79).

Today action still showing resistance level RM0.825 (previously support level) yet to be broken. More efforts needed to indicate a true rally is to break out RM0.825 with strong buy-in.

Revisit KLCI Trend Analysis

Started analyse KLCI trend since last week. Refer to my view dated on 5 & 9 Aug.

It came as no surprise with the current trend movement.

KLCI index close below the narrowing trend channel. Strong sign to stay out of the market for time being.

RSI trending downward and broke the 70 level and it's align with MACD bearish crossover slowly trending down.

Watch Out - Interesting event on KNM

Since Monday (10 Aug), price still closes above RM0.825 (support level) despite intraday movement did break through support level to RM0.82 but rebounded back above support level.

Interesting signal showed on Stochastic %K crossed above both %D and smoothed %D.
An early sign of possible bullish reversal in the making.

A possible run up if the price breaks RM0.845 level with strong buy in.

KNM : Watch Out

Currently, price has been in range bound for the past 3 weeks since it rebounded from
RM0.725.

But downtrend is in progress with Stochastic signal crossed and trending downward.

Possible stronger downtrend happen if price close below RM0.825.

Continuation of KLCI Trend Analysis

Still maintain the point of possible trend reversal in the making which made earlier on Wednesday (5 Aug) despite having Fibo Level 50% breakout.

RSI showed there is a sign of weakening of KLCI upward movement. If the signal break through level of 70, the weakness is significant.

To further support it, if MACD bearish crossover happen and trending down.

FBM KLCI Trend

Another sign is the decline of volume since 11 May 2009 hitting a high volume of 3.85 Billion. As KLCI keeps hitting new high on 12 June and 5 Aug, the volume is declining gradually.

Possible of trend reversal in the making.

Greeting Message

In the coming week, you will have an opportunities to review some of the interesting stock trend analysis happening in our local stock market, KLSE (Kuala Lumpur Stock Exchange) and with little coverage on other stock exchanges.

With these sharing of market opportunities, I hope to meet or communicate with other traders with similar interests to explore the findings and share individual's opinions.

See you soon. Stay Tune.