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Wednesday, June 24, 2009

"Return Move" or "Pivot Point" ?

STI rebounded strongly today, the rebound was much stronger than I have expected. ( I expected +35 ~ +45 ). Despite the spectatular rebound, volume is not high. The index has now returned to hug the trendline. Will this be the "return move" after it has pierced through the trendline yesterday or a "pivot point" ? The next 1 ~ 2 days' move will unfold the answer. If the index is able to propel further for another 50 points gain in the next 1 ~ 2 sessions, it will trigger the Parabolic SAR buy phrase which is bullish. Otherwise, today may just be the 'return move' ( or 'throw back' ) which mean the correction will continue until the objective of 2100 is met.
Honestly, I am quite netural and I don't need to be correct with my view here. All I want is to make money & not a fortune teller. I am holding long so I do hope that my interpretation of the breaking of trendline is wrong. However, trendline violation is a pretty serious issue in technical analysis and more often than not the objective will be met.




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posted by Market Wizards @ June 24, 2009 Comments: 0