STI - "Point and Figure" point of view
The technical landscape of STI appears to have improved during the past week.
ADX declined from 33 to 21 while DI- and DI+ are converging indicating the downtrend has weaken. RSI is at the verge of crossing the center line. All we need is a break above the last significant high at 2,821 to turn bullish.
ADX declined from 33 to 21 while DI- and DI+ are converging indicating the downtrend has weaken. RSI is at the verge of crossing the center line. All we need is a break above the last significant high at 2,821 to turn bullish.
Point and Figure chart is showing similar sign. Column A marks the low in the chart. Column B is the first column of Xs off the bottom. This column is fixed by Column C. Therefore, vertical count can be established at Column B.
Vertical Count Target = [ (number of Xs in column B) x (box size) x (reversal) ] +lowest low at Column A
Vetical Count Target = [ 11 x 10 x 3 ] + 2650 = 330 + 2650 = 2950
The trigger point is the potential breakout of a double-top buy signal at 2,830.
Remember not to be confused about the "double-top" or "double-bottom" ( with a dash ) buy or sell signals in Point and Figure with the classical TA chart pattern "double top" or "double bottom"
Both classical chart and Point and Figure chart confirm with each other that if STI can break above 2,830 it will turn bullish with a near term target of 2,950.
Vertical Count Target = [ (number of Xs in column B) x (box size) x (reversal) ] +lowest low at Column A
Vetical Count Target = [ 11 x 10 x 3 ] + 2650 = 330 + 2650 = 2950
The trigger point is the potential breakout of a double-top buy signal at 2,830.
Remember not to be confused about the "double-top" or "double-bottom" ( with a dash ) buy or sell signals in Point and Figure with the classical TA chart pattern "double top" or "double bottom"
Both classical chart and Point and Figure chart confirm with each other that if STI can break above 2,830 it will turn bullish with a near term target of 2,950.
I know this post contradicts with some of the previous posts where there were concerned over STI based on Elliot Wave count. As stated though, wave count makes sense often with the benefit of hindsight. Price and volume action of the market are dynamic and therefore it is not surprising that technical view may change from time to time.
Labels: Market Direction
posted by Market Wizards @ June 13, 2010
Comments: 0
