Dow Jones - Possible Reversal !
Time and again, the market has proven it is not possible to decouple from Wall Street. Despite that the STI chart has shown signs of regaining strength if we look at it in isolation ( from other markets ). The sharp plunge of Dow by 268 points on Thursday has caused a tailspin of Asian bourses including STI, which has lost 61 points.
My worst case scenario for Dow is 9,650 and for STI is 2,600~2,650.
That said, it DOES NOT mean Dow & STI MUST reach those levels. The fact that Dow touches 9,835 on Friday before closing above 10,000 again & STI touches 2,680 MAY be good enough.
On the chart, the closing candle of Dow on Friday was a typical reversal long legged doji at star position. This has been true for several past corrections highlight in yellow. But if this assumption is wrong, we will eventually see Dow to touch 9,650.
My worst case scenario for Dow is 9,650 and for STI is 2,600~2,650.
That said, it DOES NOT mean Dow & STI MUST reach those levels. The fact that Dow touches 9,835 on Friday before closing above 10,000 again & STI touches 2,680 MAY be good enough.
On the chart, the closing candle of Dow on Friday was a typical reversal long legged doji at star position. This has been true for several past corrections highlight in yellow. But if this assumption is wrong, we will eventually see Dow to touch 9,650.
I have begun to accumulate some bluechip like Capitaland & SembMar.
Labels: Market Direction
posted by Market Wizards @ February 07, 2010
Comments: 0
