STI Analysis ( Nov 14 ~ 18 )
Reference the daily chart below:
1. Trendline 1 is a short-term uptrend line. It was violated decisively on Thursday. The trendline violation target is 2,690.
The above hypothesis is, however, not infallible because trendline 1 can always be redrawn to accommodate the sharp plunge of Thursday ( see trendline 1" ).
The above hypothesis is, however, not infallible because trendline 1 can always be redrawn to accommodate the sharp plunge of Thursday ( see trendline 1" ).
2. Trendline 2 is a valid downtrend line. It is valid because it has been touched 3 times ( a trendline that has been touched twice is only tentative trendline ). Successful breakout from this level strengthen the confident we are already riding a new uptrend since Oct 6.
3. Trendline 3 is a major resistance, some people consider this the neckline of an inverted head and shoulders pattern. I am not certain if such a pattern is valid. However, a break above this level does have significant meaning. It marks a new higher high in the new uptrend which is an important evidence confirming the uptrend we are riding is here to stay.
Labels: Market Direction
posted by Market Wizards @ November 13, 2011
Comments: 0
