STI Trendline Broken
The up trendline has finally broken. The violation signals a possible trend change but not necessary a reversal. The uptrend rises at a steep angle of 60 degree, the rate of ascent is usually not sustainable.
The index is currently supported by the 20 days moving average. If we can be more 'forgiving' about the violation of the trendline and focus on the existing set-up ( prices are hugging 20 MA, CCI is still low ). The outlook may not be as pessimistic as I original portrayed ( ie: STI will retrace to 1,650 ~ 1,750 ). What may happen is that the index is trying to re-adjust to a slower rate of ascent at 45 degree. But if the defense put up by the 20 MA don't hold, the pessimistic view may come true. For now, there seems to be a chance for some upsides based on the swing trade set-up.
Wilmar......oh Wilmar ! I was correct on the chart pattern breakout but did I buy? NO! The past three days have been very hectic for me work wise. First, I have overseas visitor in town.... Next, I need to sit for the CFTe exam amid the busy schedule! There was day where I don't even have time to look at the index !
Capitaland - Tomorrow ( if it ever happen ), swing trade buy signal trigger at 2.75 ! Again, TA is not about buying at the lowest. If it is, 2.65 today would have been a better entry !
The index is currently supported by the 20 days moving average. If we can be more 'forgiving' about the violation of the trendline and focus on the existing set-up ( prices are hugging 20 MA, CCI is still low ). The outlook may not be as pessimistic as I original portrayed ( ie: STI will retrace to 1,650 ~ 1,750 ). What may happen is that the index is trying to re-adjust to a slower rate of ascent at 45 degree. But if the defense put up by the 20 MA don't hold, the pessimistic view may come true. For now, there seems to be a chance for some upsides based on the swing trade set-up.
Wilmar......oh Wilmar ! I was correct on the chart pattern breakout but did I buy? NO! The past three days have been very hectic for me work wise. First, I have overseas visitor in town.... Next, I need to sit for the CFTe exam amid the busy schedule! There was day where I don't even have time to look at the index !
Capitaland - Tomorrow ( if it ever happen ), swing trade buy signal trigger at 2.75 ! Again, TA is not about buying at the lowest. If it is, 2.65 today would have been a better entry !
Labels: Market Direction
posted by Market Wizards @ April 23, 2009
Comments: 2
