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My Charting Blog

It is interesting that I start off this Blog when the Singapore Stock Market is heading south. However, this makes it more interesting for me to write on as the market turned volatile. My interest is Technical Analysis, TA for short. I love to look at charts and predicting where they are heading. This blog is or me to record my thoughts on the market. The articles on this blog are based solely on my personal opinion on the charts that I read and readers should not take it as absolute.

7/25/2009

DJIA - Reverse Head and Shoulder?

It is Saturday evening and I am in my bed writing this. My son did not have his afternoon nap and I am to ensure that he sleeps early tonight while my wife play with my daughter. The weather is acting very strange lately, from rain to sudden warm.


Fig 1. DJIA Weekly

I am reading my chart at the moment and took a look at DJIA. Seems like this guy intend to move up. So my wave count is correct afterall?

What I am seeing now is a reverse Head and Shoulder and the index crossed the neckline. So I guess it is going for a minimum objective of 11,483 with this set up. However, looking at the set up with very small shoulders. It is minor wave which may break down. But no matter what it will go some way if not all the way. Incidentally, the minimum objective is also a 61.8% Fibonacci retracement.

Let's get into the Fortune telling business. looking at the bar, I would predict one more bar of the same length next week. Making it a 3 white soldiers on Candle sticks. This will give confirmation of an up trend.

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