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STI

Ichimoku Chart Review : OCBC and Wilmar

Today, I am just going to stray away from the US stocks and briefly discuss about 2 stocks on the Singapore Exchange.

1. Wilmar, in the commodity sector. A darling that has went 3 folds since the lows in 2009. It was also included in the STI Index last year.

2. OCBC. One of the 3 major banks in Singapore and I believe, is part of the STI Index as well.

Let’s take a look at Wilmar first.

From the chart, we can see that Wilmar has retraced from its high of  about $7.2 and is now reaching its long term support at around $6.45

We can also see that the Tenkan sen and Kijun sen has crossed with the price still holding above the kumo support. With the kumo support so thin, I think the bearish trend will have a higher chance to continue. We can also see that the leading kumo is also going to twist; a suggestion that the bullish trend is changing.

Next, we take a look at OCBC. One of the 3 ‘darling’ banks in Singapore. The others being UOB and DBS.

Compared to Wilmar, OCBC situation seems to be more bearish.

1. We can see from the ‘vertical line’ that marks Jan 4 this year to the second ‘vertical line’ which marks the last day of trading for January 2010. Throughout January 2010, OCBC has more down days than up; breaking support levels as it goes.

2. So,where are we now with respect to OCBC?

– It has already have a bearish cross from Tenkan sen and Kijun sen.

– The leading kumo has also turned; suggesting a bearish outlook.

– It is now trading near the bottom of the kumo. Any price within the kumo is considered trendless. But, with its trading time at$ 8.28 at lunch time, I think there is very little chance of it going above $8.35

– In other words, after its gap down and rebound, OCBC is set to make a lower high.