Creative.....

I was watching Creative today while at work (my bosses better not read this). While my chart reading last night gave me some indications on condition for entry and stop loss. However, its move today gave me a headache because it first hit my stop loss level then hit the entry signal. So I am now having a conflict on whether the stock can be entered.



Fig 1 Creative Daily chart

Last night, Creative seems to be on a verge of completing a downward wedge with an objective of around SGD6.80. So a condition of entry was placed at the point of break through of SGD5.70, at the same time, a stop loss was placed at SGD5.50 since the previous low was SGD5.56. This seems safe enough.

Ironically, it went all the way to SGD5.50 and then SGD5.75. At the end of the day, this chip has done a spinning top, indicating an uncertainty on its direction. I think a parts integration process (NLP) is in order. The support on daily basis is SGD5.46 base on 21 days MA. Both RSI and Stochastic at bottom but no indication of entry yet.



Fig 2. Creative Weekly Chart

When I read the weekly chart however, there is a strong suggestion that I should still stay out of this stock. a Doji star confirmation still fresh at hand with support on declines on both RSI and Stochastic. End of the day, I have to make a decision to sit on the fence for this stock, regardless if it goes up or down next.