Is Technical Analysis Still Relevant ?
[ Hindsight Comment : July 4, 2012 ]
The post below was written on June 10, 2012. At that time, the STI has violated Trendline A which is an important trendline with three valid touches. I have expected that the STI will met the trendline violation target. However, a hindsight view of the chart ( above ) shows that the market did not respect the important of trendline violation. This is one of the many incidents I have found lately from many charts. Is Technical Analysis still relevant ?
With this, I have decided to reduce my dependency of classical technical analysis but place more emphasis on system trading !
================= Original Post Dated June 10, 2012 ==================
Trendline A is a long term
uptrend line of STI with three valid touches. This uptrend line was
penetrated decisively on around May 25 suggesting more weaknesses ahead .
The downside target is approximately at October 5, 2011 low. As the
current market is quite oversold, it is likely we may see the index
rebound to touch Trendline A ( 2,800 ~ 2,820 ) before resuming the
selling to meet the downside target ( around 2,500 ).
Labels: Market Direction
posted by Market Wizards @ June 10, 2012
