DJ INDU AVERAGE=8,500 (Good chance to attempt its 200DMA at 8,867in coming days)
NIKKEI 225 INDEX (Crossed 200DMA today..the last in Asia to do so)
Back in Singapore, a three-month rally in Singapore's Straits Times Index may falter at the 2,390 level, triggering a decline in the city's equities, according to Fibonacci analysis of the benchmark index by DMG & Partners Securities Pte.
That level represents a 38.2 percent "Fibonacci retracement" from the index's more than five-year intraday low of 1,455 reached on March 9, James Lim, an analyst at DMG & Partners in Singapore, wrote in a note yesterday. The Straits Times Index rose 2.2 percent yesterday to 2,380.07, its highest closing level since Sept. 26.
The gauge looks due for "consolidation" after rallying 63 percent from the March low, Lim wrote. A Fibonacci analysis is based on a theory that signals advances or declines within certain percentage ranges between market highs and lows; for instance the Straits Times Index's high of 3,831.19 in October 2007 and its low point in March.
The Fibonacci percentages are based on the relationship between certain numbers in a sequence in which each number is the sum of the two figures preceding it. They are referred to as "levels of resistance." A stock breaking through a level may indicate a continuing trend while a possible stall is indicated by a failure to move through. Sell orders may be clustered at resistance levels.
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