Wedge breaking down

I work on my charting at night, mainly because I work in the day and only nights belong to me. One thing bad about working at night is the temptation of sleep. Sleepiness tends to reduce the accuracy of my read. I recall last Friday when I attempted to read my chart by 12:00AM. I found myself not able to make out what the chart was telling me. Well one reason was that the chart was in-determined in either direction, while I have committed to figure out a direction no matter what. Anyway, it was off to bed for me.

I also write my blogs at night. This is done right after my analysis. So the later I finish, the slower I become in typing out the words. Another disadvantage in writing at such hour I find is the network traffic. Probably it also has something to do with my own modem. It seems to cut itself off from time to time. This makes loading onto Blogger.com harder. I was thinking of writing my blog last night, but somehow, I just could not get into my edit page.May be I would just need to wait till after 12:00AM.

I was looking at the chart last evening when read STI. On the daily basis, it looked very much like a wedge with target direction downward to the point I have stated in my previous blog. As I changed the time frame to weekly basis, I noticed something different. No longer it resemble a wedge, but more of a double bottom with target heading for 2,681. The RSI on weekly chart indicates continuation to the north. If the higher time frame dictates the lower time frame, then we may not see the wedge breakout but the double bottom to push STI up.



Fig 1. STI Weekly Chart



Fig. 2 STI Daily Chart

The STI at the moment is on the edge of the upper trend line of the wedge. There is still possibility that it will move south since the double bottom is not very obvious. Therefore, the point 2,554 is very important. So we shall see tomorrow.



Fig 3. Wing Tai Daily Chart



Fig 4. Wheelock Daily Chart

While going through the charts, I find particular interest in properties. While reading my focus stocks, I find that both Wing Tai and Wheelock are doing well, they are at the bottom of the wave and turning. The RSI indicators for both stocks are supporting the move so far.

Wing Tai is presently at 1.84, the upward move attracted volume with trade today. Its 3 to support level at 1.77 while target is between 1.93 to 2.03. Wheelock rests at 1.77, supported at 1.708 and targets at 1.926 due to a double bottom formation. I feel that Wheelock may be a safer by since its formation is clear.