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Wednesday, October 10, 2012

Bull Trap

The STI gaped down and broke the uptrend line reversing the bullish outlook it has falsely painted on last Friday after it has breached the resistance at 3,090.  This is a difficult market. There was a bull trap at work. At Point A, I would thought that the market will break the uptrend line but it didn't. It went up to break the resistance at 3,090 instead ( Point B ) giving a false bullish picture. It finally breaks the uptrend line at Point C and turned bearish.