Something is brewing .....
Something is brewing in the horizon.... !
Admittedly, many chartists have abused chart patterns without paying due respect to volume ( or time to Apex, in the case of triangle ). Therefore, I have always been quite careful when naming a chart pattern. With this understanding, the probable Head and Shoulders (H&S) pattern of STI is becoming more and more real when volume is taken in consideration. A H&S pattern should have heavier volume on the left shoulder, a light volume on the head and a even lighter volume on the right shoulder. The current development of STI met all the criteria!
A break below the slanting trendline will bring us one step closer to the deadly H&S pattern. The pattern is confirmed when the neckline at around 2,640 is taken. The price objective of the H&S pattern is around 2,200.
A break above April 15's high at 3,037 will invalidate the fear of the H&S pattern.
PS: I am staying with cash for the time being !Admittedly, many chartists have abused chart patterns without paying due respect to volume ( or time to Apex, in the case of triangle ). Therefore, I have always been quite careful when naming a chart pattern. With this understanding, the probable Head and Shoulders (H&S) pattern of STI is becoming more and more real when volume is taken in consideration. A H&S pattern should have heavier volume on the left shoulder, a light volume on the head and a even lighter volume on the right shoulder. The current development of STI met all the criteria!
A break below the slanting trendline will bring us one step closer to the deadly H&S pattern. The pattern is confirmed when the neckline at around 2,640 is taken. The price objective of the H&S pattern is around 2,200.
A break above April 15's high at 3,037 will invalidate the fear of the H&S pattern.
Labels: Market Direction
posted by Market Wizards @ July 15, 2010
Comments: 0
