Market Technician

Shanghai Stock Exchange (SSE) Revisit: 1st TARGET 3,200 REACHED Commentary: Our earlier FB post (18/1/17) on SSE reaching target of 3,200 actualised yesterday, with SSE closing at 3,216. Traders can continue to monitor for continuation or reversal candlestick patterns to gauge if SSE could trade towards its 2nd TP. Many investors may not trade or invest in Shanghai Stock Exchange. However, traders can make use of this post to learn how candlesticks pattern analysis can be useful in better understanding market trend, demand and supply.

Commentary: From my earlier post, we noted from FTSE Small Cap index is trading on a bullish upward momentum. In short, small cap stocks should generally do well. Technical Observation: One of its component stock, Lian Beng, broke out from its accumulation zone during today's trading session, showing good trending momentum. More info with regards to the set-up are explained on the chart attached in this post. Short-term traders can consider the following trade plan. Entry: 0.505 Stop Lost: 0.475 Target Price: 0.590 Risk/Reward: 2.83x

FTSE Small Cap Index: STRONG MOMENTUM   Commetary:  Straits Times Index (STI) has rallied pass our initial target of 3,050 and currently standing at 3,098 testing 3,100 resistance. Market is currently in a bullish mood. Traders can consider switching their focus to Small Cap Stocks for opportunities, as the FTSE Small Cap Index, which tracks the performance of the small cap stocks, set to continue its momentum and challenge its 400 resistance.  Technical Observation: The FTSE Small Cap index trades in a consolidation zone for 12 months since February last year. However, this 2-3 weeks of trading saw the index breaking out from 2 consecutive resistances which are signs of strength of a strong bull. These provided us with technical reasons that the current rally has strong potentials to continue.