Reversal In Progress (UOBKH)
Something new show up in my Elliot Wave chart today. The numbers 3, 4 & 5 are the target ( if my chart is correct ) :
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The below is from UOB Kayhian. They have moved their research report link to the client area only assessable by clients. So I thought it is useful to post a copy here:
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The below is from UOB Kayhian. They have moved their research report link to the client area only assessable by clients. So I thought it is useful to post a copy here:
Technical Analysis
Reversal in progress - UOB Kayhian
The pullback in equity markets should not come as a surprise to investors. We had been warning for some time that equity markets were showing clear signs of top formation. For the US, we had stated the DJIA was expected to trace out in a rising wedge formation and suggested a move towards 10,000 as the final 5th wave of the wedge formation. That has materialised and the index has also broken out of the wedge formation. There is an early indication that the uptrend from Mar 09 has now ended. Pullbacks from rising wedge formations should be swift and we estimate significant support at about 9300- 9340, a 38% retracement zone.
We had also opined that the FSSTI was likely to head towards 2,730 in an anemic breakout and then swiftly retrace. That has also materialised with the index heading to 2,739 and swiftly retracing. We now expect the index to head towards 2,480-2,500 before a minor rebound sets in.
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I will post my own analysis & view separately !
The pullback in equity markets should not come as a surprise to investors. We had been warning for some time that equity markets were showing clear signs of top formation. For the US, we had stated the DJIA was expected to trace out in a rising wedge formation and suggested a move towards 10,000 as the final 5th wave of the wedge formation. That has materialised and the index has also broken out of the wedge formation. There is an early indication that the uptrend from Mar 09 has now ended. Pullbacks from rising wedge formations should be swift and we estimate significant support at about 9300- 9340, a 38% retracement zone.
We had also opined that the FSSTI was likely to head towards 2,730 in an anemic breakout and then swiftly retrace. That has also materialised with the index heading to 2,739 and swiftly retracing. We now expect the index to head towards 2,480-2,500 before a minor rebound sets in.
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I will post my own analysis & view separately !
Labels: Market Direction
posted by Market Wizards @ November 02, 2009
Comments: 0
