Straits Times Index - Crucial Juncture
STI tested the major resistance today but reversed from there. The closing is a 'dark cloud cover' candlestick. On March 27, STI closed with the same candlestick pattern ( resulted in two days of sharp plunge ). The volume today is much heavier than March 27, this has a more bearish implication. As stated before, momentum indicator shows clear sign of bearish divergence signaling the uptrend is losing strength. We need to watch closely over the next few trading sessions whether the up trendline will be broken. Once the up trendline is violated, we can expect the index to reverse to 1,650 ~ 1,750.
The uptrend started in March 10 and has risen for 34% to date. The musical chair has rotated to penny stock this week ( rose by 14% ). Each time, when you see Yongnam,* CSC*, Lian Beng* are moving, it usually signal the uptrend is in question !
* what I really meant was penny stocks in general
The uptrend started in March 10 and has risen for 34% to date. The musical chair has rotated to penny stock this week ( rose by 14% ). Each time, when you see Yongnam,* CSC*, Lian Beng* are moving, it usually signal the uptrend is in question !
* what I really meant was penny stocks in general
Labels: Market Direction
posted by Market Wizards @ April 16, 2009
Comments: 0
