SG-Technical

Markets- Regional markets have corrected sharply over the past 2 days.
The
Nikkei has lost 583 points from recent high while the HSI has lost
almost
500 points over the past 4 days. Still, there is no sign of trend
reversal
on either of these bourses. Price chart on the Nikkei suggests that
the
current decline towards 15831 is part of a large wedge pattern that
still holds the potential for another advance. Similarly, the pattern
for
the HSI shows a "flat' structure which according to Elliott wave
theory is
a minor corrective structure. Specifically the pattern looks like the
terminal stage of a wave 4 move which could reverse back up from the
16950-17000 range.
In Singapore, the ST index's 30 odd decline from 2534 has not formed a
bearish 5 wave decline and as such holds scope for further advance.
significant So long as the index holds above the 38% retracement level
of
the move from 2525-2434 or 2492, there is scope for further advance. So
all
in all, we would recommend readers to hold on to some of our earlier
recommended long trades. Celestial Nutrifood for example has trendline
support near $1.60 and is still in an uptrend. SPC, likewise has
trendline
support near $4.88 and is unlikely to deteriorate further. We also
continue
to favour China HongXing at $1.62, Global testing remains attractive at
$0.26 as in UTAC at $0.75.