Market Diary:
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Friday, April 27, 2012

Biosensors Retesting Long Term Uptrend Line

Biosensors has arrived at a critical chart point - it is retesting a long term uptrend line that was established since November 2009. If the uptrend line is penetrated decisively, we may see 90 cents as the corrective dip target. Conversely, if prices rebound from the uptrend line. This may mark the end of the corrective dip similar to Oct 5, 2011 where RSI in both cases ( today and Oct 5 ) are oversold.


Saturday, April 7, 2012

RSI Bearish Divergence On Major Indices

Both DJIA and S&P500 closed with a doji at evening star position after touching trendline support. This may signal the end of a three days loosing streak for the US indices ( evening star doji is a 3-day pattern so confirmation is needed on Monday ). However, all major indices namely the Dow, S&P500 and Nadsaq are showing RSI bearish divergence. This forth warn weaknesses ahead. As for the STI, it is unclear whether we are heading for a triple tops, an impending ascending triangle or even a rising wedge. Confirmation is needed depend on which trendline it is breaking. It is desirable to stay defensive  before the trend becomes clear.


Monday, April 2, 2012

Biosensors - Control Returns To The Bulls

Biosensors rose 4.5 cents today to $1.55, the biggest one day gain in 8 weeks. There is evidence from the two charts below that the control has now been returned to the bulls ( That said, it doesn't mean profit taking won't set in. On the contrary, any profit taking will give us a chance to buy on dip ) :

K39- The last Stochastic fresh buy signal :

Mechanical Chart - Returned to Bullish Zone :