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Wednesday, February 25, 2015

SATS Limted

SATS has successfully breakout from a downtrend line has closed with a higher high today at $ 3.13:

Updated ( March 1, 2015 ) : 
The same stock in Point & Figure Chart which provide unambiguous price target projection by mean of vertical count method :

Please note, however, that the word "unambiguous" does not mean infallible. Also, it will be naive to think that prices will rise in an uninterrupted fashion to reach the price target of $3.428 from here without any pull back in between. Instead, this price target is a mid term target ( few weeks to few months ) after surviving from a series of up and down moves.


Sunday, February 22, 2015

STI Technical Analysis

The Straits Times Index has been trading in an uptrend channel since Feb 2014 after a breakout occurred from an Inverse Head & Shoulder pattern.  The trading range of the channel is pretty wide.   Currently, it is about 3/4 from the upper boundary where RSI is not overbought yet.  Therefore, there might be further upside potential.  

There are, however, two observations that deserve attention : 
1. There may be a RSI bearish divergence under development ( unless the RSI do swing higher with rising prices ), 
2. The gap up on January 23 may form an "Island"  leading to an Island Reversal if this gap is closed with a gap down.

These two observations are pre-emptive in nature or something that we need to be cautious about. It is not something that will definitely happen.