Market View - July 11 ~ 15
THE STRAITS TIMES INDEX
Weekly Chart :
A hanging man candlestick was formed last week. Although not as bearish as a shooting star, a hanging man candle in evening star position does signals indecision between the bulls and bears, and foreshadow possible selling pressure in the upcoming weeks.
A hanging man candlestick was formed last week. Although not as bearish as a shooting star, a hanging man candle in evening star position does signals indecision between the bulls and bears, and foreshadow possible selling pressure in the upcoming weeks.
Daily Chart :
The index failed to breach the major downtrend line last week after retested it for the 5th times. Unless it is able to breakout from the major downtrend line ASAP, the symmetrical triangle will be invalidated due to the time to apex will soon be exceeding 3/4.
If a breakout does occur, the implication is extremely bullish as it signifies the validity of the symmetrical triangle.
The index failed to breach the major downtrend line last week after retested it for the 5th times. Unless it is able to breakout from the major downtrend line ASAP, the symmetrical triangle will be invalidated due to the time to apex will soon be exceeding 3/4.
If a breakout does occur, the implication is extremely bullish as it signifies the validity of the symmetrical triangle.
Point and Figure Chart :
Levels to watch:
3,170 - Double-tops buy signal, the first foray to turn bullish
3,190 - Multiple-tops strong buy signal. Once this level is triggered, a vertical count target of 3,700** will be activated.
3,110 - Double-bottom sell signal ( to close long positions, not to open new shorts ), indicates the bullishness we saw maybe false ( we are in a bull trap )
** Point and Figure target derived from "count" ( vertical count or horizontal count ) provides an indication instead of absolute target. It will be naive to think that prices shall move in a straight line heading toward the target with no retracement in between.
Labels: Market Direction
posted by Market Wizards @ July 10, 2011
Comments: 0
