STI - Conflicting Signals
I am reluctant to post the chart below, which suggest that there might be an Ascending Triangle forming. An A-Triangle is usually a continuation pattern that has bullish implication. Volume wise it is definitely not perfect textbook model so this may cast doubt on the potency. If, however, it is valid. The breakout target based on the pattern shown is 2,950.
The reason I am reluctant to post the chart is because I have been bearish about the market based on Elliot Wave count. I have been anticipating for a moderate correction to 2,250. So there is a conflict right now on which signal to believe - the Wave Theory or Classical Technical Analysis.
I will be watching closely on how STI is to resolve the major resistance at 2,700. This will give us clue on which way it is taking ! For now, I am bearish bias and tends to think that the A-Triangle is not real ( because many of the bluechips, such as Yanlord / Capland...etc. are showing bearish signs anyway ).
The reason I am reluctant to post the chart is because I have been bearish about the market based on Elliot Wave count. I have been anticipating for a moderate correction to 2,250. So there is a conflict right now on which signal to believe - the Wave Theory or Classical Technical Analysis.
I will be watching closely on how STI is to resolve the major resistance at 2,700. This will give us clue on which way it is taking ! For now, I am bearish bias and tends to think that the A-Triangle is not real ( because many of the bluechips, such as Yanlord / Capland...etc. are showing bearish signs anyway ).
Labels: Market Direction
posted by Market Wizards @ September 21, 2009
Comments: 0
