Dear Readers,

Last weekend was a national mourning and very emotional week for everyone. This scene was never seen before or likely to be repeated. Close to 500,000 people had queued for up to 5 – 10 hours to attend Mr. Lee Kuan Yew body lying in state at Parliament house. I am one of them, 4 hours 20 min to enter the Parliament house. It seemed the best way for Singaporean to say: "Thank you, Mr. Lee".

But we must carry on with our life, let's turn to the markets and zoom in on our charts...

STI Open: 3,441.94

Week High: 3,469.02

Week Low: 3,435.59

STI Closed: 3,453.75

Price Change: +3.65

Percentage change: +0.1%

Total Volume: 0.694 billion

The weekly chart is showing uptrend and overall market breadth is healthy. But on the negative side, the volume was very low due to short trading week (Good Friday). On daily charts, STI do a false upside breakout and return to resistance level. MACD histogram is ticking down. While signals are mixed, I am leaning towards the bull than the bear. Note that the Impulse system is green for weekly and blue for daily, permitting buying or holding but disallowing shorting.

In summary:

The market continues to hold up and even rally on its 2-year inertia, with low volume. The rally may persist, and even taking out the high of 22^nd May 2013 (3,464.79). But the risk level for longs is very high as the daily MACD histogram is ticking down (weekly still uptrend). Short term trading is OK, but be sure to protect all your holding - because when it start dropping out it can get ugly. In my own trading, I aim to catch short term swings. The technical signals are working well, both long and short.

Be cautious and trade well,

Divergence Trader

PS It will be May soon; do you know a well-known trading myth "Sell In May And Go Away"? While many ride on the trading bandwagon, only few truly understand these myths. STI has been up close to 250 points from 3,200 since Dec 2014 to current 3,450. Will STI repeat the "Sell in May and Go away" or not? I am organizing a 2 hrs market outlook

Click here for the link.Workshop Highlights:

- Tour around the world (Market outlook of Major Indices e.g SSE, HKSE, DAX, STI etc)

- Selling a Bull

- A "screaming" sell

- Just in time for the party

- Individual Singapore Stocks

Date: 9th Apr 2015 (Thursday)

Time: 7 pm - 9 pm

Venue: City Index Asia Pte Ltd 6 Battery Road #20-01 Singapore 049909

If you are interested, please send me an email at divergencetrader@gmail.com with the following details.

The post A suspicious breakout – Weekly Review For 6th Apr 2015 appeared first on Divergence Trader.