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Wednesday, August 3, 2011

STI Update

STI dips back into the symmetrical triangle after the initial breakout. Technically, this is bearish as it implies we may have encountered a bull trap. However, it is too early to dismiss the bullishness we have seen in STI unless the Head and Shoulder chart pattern for Dow Jones is true.

The volatility today is a gift sent by God. I have personally profited from two intra-day trades on Biosensor and Yangzijiang. After taken profit from these two intra-day trades, I went on to pick up some SembMar to keep overnight in anticipation for a rebound tomorrow. There is no specific reason why I picked SembMar, I guess I like the long tail ( hammer ).

STI closed with a doji today at star position. This is usually followed by a technical rebound. I hope it remains true this time.