STI - Point and Figure Chart (update)
STI retreated today because prices have reached the Bearish Resistance Line ( slanting black line ) and a horizontal resistance line ( horizontal black line ). However, the retracement is not large enough to cause a reversal ( yet ) in the Point & Figure chart.
On the other hand, Candlestick chart shows a bearish Harami candle today. Chances is we may see some short term weakness with support at 2,825.
If, however, the index is able to overcome the resistance and break above 2900, this will generate a new buy signal ( stronger than the previous one ) with a Horizontal Count target of 3,010. A Horizontal Count is possible due to the Fulcrum pattern formed between May 3 ~ June 8.
On the other hand, Candlestick chart shows a bearish Harami candle today. Chances is we may see some short term weakness with support at 2,825.
If, however, the index is able to overcome the resistance and break above 2900, this will generate a new buy signal ( stronger than the previous one ) with a Horizontal Count target of 3,010. A Horizontal Count is possible due to the Fulcrum pattern formed between May 3 ~ June 8.
Labels: Market Direction
posted by Market Wizards @ June 22, 2010
Comments: 0
