APF Trading Technical Analysis Market commentary 27 feb 2011

TECHNICAL ANALYSIS27 FEB 2011

APF Trading

MARKET COMMENTARY

APF Trading

9 Battery Road12F Straits Trading Building

Singapore 049910   

Jay Ngjay.ng@apftrading.com

 Glenn Ho

glenn.ho@apftrading.com 

Website:www.apftrading.com

www.asiapacfinance.com

Singapore Exchange

Weak support region gue to thin Kumo

Kumo twist

Chikou Span breaching Senkou Span A

Singapore Exchange

A word of caution for SGX longs 2 months since Tenkan Sen crossed below Kijun Sen Current price below both Kijun and Tenkan Sen, a bearish

sign Concurrently, the Chikou Span breach the Senkou Span

A, price test the support Kumo Region and the future Kumo twists

What draws our attention is the weak support determined by the thin Kumo (circled)

It would be very easy for prices to break downside of the Kumo

If price breaks below the Kumo and Chikou is below prices, a strong bear trend would be in play.

CIMB Group

Strong Kumo support

CIMB Group

Rally of more than 200% gains after the last bullish buy triggers

For the first time since Apr 2009. Price closes for the week below Kijun Sen for 3 straight weeks now

While all the other Ichimoku elements still show that it is in a bull trend, it is advisable to watch near term price action for a hint of a trend reversal

The thick Kumo acts as strong support and the bull trend is still in play

Newcrest Mining

Newcrest Mining

Recent weak bearish Tenkan Sen Kijun Sen crossover Chikou Span ended very near the close, meaning the

close last week is near the close 26 weeks ago. A neutral sign

The Kumo is thick, providing strong support. Notice the flat Senkou Span B, suggesting prices had

not broken out of both the high and low for the past 52 weeks for a while now, suggesting sideway trading.

A subsequent bullish Tenkan Sen/Kijun Sen would be a strong bull crossover.

Meanwhile we expect prices to go sideways with support at Kumo

Larsen & Toubro

Larsen & Toubro

After the last perfected TD Sell Setup, prices dropped 31.64%

Currently Chikou Span is below price and below the Senkou Span A, a bearish sign

Kijun Sen is below Tenkan Sen and prices below Kumo, a bearish sign

We expect prices to continue its descend, with a break below the Kumo Shadow at 1177 a chance to add to position

Honda Motor

Price broken up of TDST line, expect current TD sell countdown to reach completion, aligned with bull rally indicated by Ichimoku lines

Honda Motor

After the medium strength Tenkan Sen/Kijun Sen crossover, Honda’s price rallied about 17%

Prices also broken up of previous TDST line on a qualified basis (represented by solid green line)

We expected prices to continue its rally and TD Sell Countdown to reach completion

Kia Motor

Kia Motor

Solid run up following the Tenkan Sen/Kijun Sen crossover as prices broke out of weak resistance in early May 2009

Notice how prices did not close for the week below the Kijun Sen since then

Bull trend intact. Longs can consider a stop loss slightly

below the Kijun Sen.

APF Trading is a trading advisory firm offering clients Managed Forex Accounts and advice on multi-asset trading strategies, signals, trading systems, execution services and trading platforms. The firm also conducts research and technical analysis with a focus on Ichimoku Kinko Hyo and DeMark Indicators.