Market View
The Market :
The current market continues to be volatile and difficult to predict. This can be seen from the mechanical chart below where "Sell Short Exit" signal and "Buy Exit" signal whipsaw from each other 3 days apart. Prices are now trading within a congestion zone between Fibo 23.6% and 38.2%. An upside breakout (from Fibo 38.2%) will see 2,860 as target whereas a downside breakout (from Fibo 23.6%) will bring the index to 2,640.
The Weekly Chart shows a nice hammer followed by a bullish candle, the mid term prospect suggests the likelihood for STI to hit 2,860 even if it needs to first touch 2,640 ( based on Elliott Wave count).
SembMar Recap :
In my post dated August 19 ( see here ), I stated that SembMar will find strong support at $3.00 before a sustained rebound can be found. The counter traded in the exact manner. It hits $3.05 on Oct 4 and thereafter rallied to $4.09 on Oct 17. Honestly, when I made the commentary back then, I have no clue this will be the outcome. I was merely making the observation from the chart. This is a good example where Technical Analysis works, not that I am good.
Labels: Market Direction
posted by Market Wizards @ October 22, 2011
Comments: 0
