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Web thoughts-denzuko1.blogspot.com

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.

12/30/2009

Wave Count on STI

Among the things I have learned on Elliots Wave, one really stands out, that is a B retracement can be higher than A, and that 4th wave cannot lower than 2nd wave means the lowest point of 4th wave cannot be lower than the lowest point of 2nd wave, not the beginning of 2nd which is the end of 1st.


Fig 1 STI Daily Chart

Now doing a recount on STI, the congestion is a 4th wave even though it is inclining upward. It bounced within the restricted boundary of a relative flat with 5 points of contact, further more, all the minor waves within are of counterwave patterns, meaning "abc", so the whole setting is a counterwave by itself. I would consider this officially 4th wave.

My expectation of a wedge earlier broke down and it went up (just like the time 2004). If I consider the the validity of a slightly inclined flat, the measurement of its target is around 3,004. Presently, it is resisted at 2,972 and supported at 2,810.

Using Ellioit Waves on DJIA

I have not been blogging on stock market for a while, partially because I made use of the long weekend to go to KL, visiting my parents. I don't get to see them much mainly because I settled myself in Singapore since 1980s.

While in KL, I managed some time to catch up with my reading, especially after I have bought 3 books from Amazon and THEY CAME EARLY! Two books on Elliots wave while one on Fibonacci. the Fibonacci one was rather disappointing but I got quite a catch on the Elliots.

After reading the books, the first conclusion I have was "boy! was I wrong about how to do wave count". First of all, it is not that difficult in theory. It is the interpretation that makes it complex. One must follow the basic principle of the wave count closely to get a proper count.


Fig 1 DJIA Weekly Chart

I have counted the DJIA base on my earlier understanding and after reading the book, I am making attempt to recount.

After reaching its top,I believe DJIA has done an abc correction, with a and c having 5 waves while b 3 waves. This I believe completed A. Base on its tapering pattern, I beleive this is wave B, which is supposed to be another abc waves. The a and b should have completed and it is now doing a "c" with a 5 waves up. However, I am lacking a 5th wave which seems to have just started. If this is so, DJIA might still have some way to go before dropping into a C wave.

While RSI and Stochastic went up, both indicators are showing mild divergence of coming down. Further to that its daily chart (not attached) has seen 14 days RSI on divergence while 5 days RSI reached higher. Seems like there is a lack of congruence in the indicators at this point of time.

My bet is still "Down".

The next resistance of the Dow is ar 10,827 while support at 10,455.

12/23/2009

All bets are off?

It started off as a really dull morning. My office is in the process of shifting to a new location and we have packed 90% our our equipment. Practically we are just waiting for the time to pass while "pretending to work".

STI on the other hand was not as dull as my morning. I was expecting a possibility of rebound yesterday because STI hit the lower envelop of the wedge the day before. While the strength of the move yesterday was not expected, it was still restricted to move within the envelop.


Fig 1 STI Daily Chart

With the move yesterday, I was expecting a limited height of 2,836 today (where the envelop is). To my surprise, STI gapped up and started off at 2,834 and hover around this point the whole morning. For a few attempts, it has broken 2,836 and stayed above this point. By evening time, it moved even higher to 2,844 before restreating to close at 2,841. So what does all these move make for STI? Is it like my teacher always said, "all bets are off"?

While it broke my heart by breaking the wedge *boohoo*, it nevertheless reminds me that charting is not an exact science, that is why you might be in euphoria when it is exactly where you expect it to be.

This reminds me of the same incident on STI some where 2004. It was in a congestion band with the formation of an upward trending wedge. I was expecting it to come down before moving higher. It however projected itself towards the apex and cause the wedge to fail before climbing up and top at around 3,800 area. I missed the move at that point of time, partially also because I was not so bother with the stock market, I got my baby boy to care for.

Is STI doing the same thing this time? It did break the upper envelop indicating a possible wedge failure. The candelstick pattern on the other hand created a different possibility. Early morning, I was expecting it to be range bound between 2,832 to 2,839. Sadly ( well, not really that sad ), it went higher to 2,844. Even so, it formed a potential evening star. The formation is not complete and requires tomorrow to confirm. If tomorrow is a down day with move similar to yesterday, the evening star would be complete, it would then signifies a reversal of STI. Tomorrow being the eve of a long weekend, this at least brings the possibility of such scenario much higher.

Looking at the indicators, both RSI and Stochastic are pointing BACK up, but weakness is seen on RSI. This could well indicate a stagnation rather than retreat, but we shall see. After all, tomorrow is only 10 hours away. My bet is STI retreating, gap down. If it inch further up, then the title really applies, all bets are off, for now.

12/21/2009

"When All Is Said And Done" by ABBA

I get to know this song through MAMAMIA and the song was sung by Peirce Brosnan. Recently I found this song to be quite meaningful. Well,"When All Is Said And Done" we will just have to wait it out.

Meanwhile, I have just bought this book R.N. Elliott's Masterworks: The Definitive Collection by Robert R. Prechter, Jr. Sound familiar? Guess what is it about....

For those who guess Elliot waves, you are right. It is a book about the very pioneer on this technique and his work. I am still on the first 10s of pages and it gives a much detail picture of how to go about recognizing the wave patterns. Of course reading the book does not mean automatically incremental in my skill level (like computer games), it does give more insight and understanding about chart behaviours.

Btw, I bought this book at http://www.Amazon.com. The main reason I finally decide to activate the purchase ( together with few other books ) is because I believe USD has met its low and reversing now. So I might as well bet that this is the best time to stretch my money, I loaded the purchase when USD was SGD1.38.

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12/18/2009

A wedge on STI?!


Fig 1 STI Daily chart

You can either call me paranoia or I need a rest from charting, that is because I am seeing a wedge on STI now. It is a small one and in my opinion incomplete. However if such is a wedge formation, its objective would be 2,704.

Both STI's indicators, Stochastic and RSI are nowon reversing, indicating a pattern of down trend. STI is also helped by the Gann Grid Resistance which it is due to meet by 22nd Dec 2009. Its immediate envelop support is 2,790 while 21 days EMA is supporting at 2,772.

If the set up is what I think it is, STI most probably trying to create a head and shoulder to justify for its reversal. The "head" is in progress of making right now.

12/17/2009

Wedge on NZD weekly chart

I have been seeing a lot of wedges recently. Most of them are BIG and took the whole "Bull" move to complete. I saw one at DJIA, one at HSI ( already broken and coming down)and now NZD.


Fig 1 NZD Weekly Chart

Okay, if you look at the "wedge" formation on NZD, it is hard to determine if it is a wedge, because under normal circumstances, you need to have 5-6 points of contact with the envelop before you can consider a full pledge wedge.This guy has been sticking to the lower envelop for so long before it broke through.

While I am a little skeptical about this, I will still consider it a wedge. However, because of its steep slope, the fall might not be that strong. Its target should be around 94.9475. So I guess this qualifies for a 4th wave down (from the looks of it).

12/16/2009

STI "Cheong" 15 points!

The market today is like a soccer game, kicking back and forth the whole time and only managed to score goal at the end. The whole day this guy keeps everyone in suspense, not revealing its true direction. In fact for quite some time it stayed at 2,809 (the most talk about level in this blog so far). It is only at the end that it surprise everyone with a 15 points leap.


Fig 1 STI Daily Chart

While this is so, there is still very little use in the 15 points move, it did not create any pattern except for a new high. I would still consider this range bound because of its envelop resistance which is now at 2,827. Its support level through its 21 days EMA is at a far low of 2,768.

While both Stochasitc and RSI are trending up, I do see a limitation on its up trend. At least Stochastic is at almost 90% of its move. Well, probably it will stay there for a while.

12/15/2009

STI follow up

With behaviour very close to DJIA, STI too has broken the fibonacci level 2,809 I have calculated (Damn!). However it took STI a whole week to do that. If not for Dubai, most likely this won't happen.

The new resistance at this moment is 2,812 and STI is testing this level for 2 days. Now one interesting note on STI behaviours is that on both days, it closed marginally lower even with STI reaching interday new high.


Fig 1 STI Weekly chart

Similar to Dow Jones, although Stochastic is moving higher, RSI is tapering off with a potential of reversal. Still the chart is still bounded within the channel.


Fig 2 STI Daily Chart

On daily basis, the outlook of the indicators is not that spectacular. Both indicators are reversing and moving south, both are diverging and strongly encourage STI to retreat.The support level I can see now is 2,663.

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Dow Jones Broken the downward trendline!

Okay, probably what's happening is not as big an issue. The thing is that Dow Jones has been trying to break through the trendline since last week and as of yesterday it managed to cross the barrier. It is presently hovering around another resistance at 10,495, as of yesterday, it closed at 10,498.

However, whatever it is doing, it is still bounded by the wedge envelop. I suppose as a "B" wave, wedge is a right pattern. While I still ponder when DJIA is going to realize its wedge objective, it still shows potential for another leg up.


Fig 1 DJIA Weekly chart

On weekly basis, the indicators are actually up! While this is so, they are topping off. There is a higher potential of a reversal. If this is so, the action will take probably 2-3 weeks to complete.


Fig 2 DJIA Daily chart

On daily basis, it is noted that the RSI is tapering off. Probably the resistance to DJIA at 10,495 is still quite relevant.

12/14/2009

What's after 2,809?

Damn, it is a crucial day for me and my system provider didn't get their data base up-dated and I left with last week's data.

What's worse? I only got around a week of euphoria over my prediction of 2,809. For a while today, I thought my solid prediction will continue to hold, for the whole of last week, STI has been testing 2,809 and retreated. Today, thanks to Dubai, someone was in very good mood and momentarily pushed STI to 2,812 before coming back down and eventually rested at 2,799 (I think).

The question in my mind now is: Is breaking of 2,809 significant? To me it is yes and no because it is still within the congestion. The significance is because once in a while it feels good to be right, even momentarily. Looking at what I have at the moment, STI resistance is about 2,823 after 2,809. Further more, 2,809 is a reference level base on Fibonacci calculation, in my past experience, there are still some plus and minus signs. The resistance envelop provides the plus in this case.

The fact that Dubai's news failed to push STI up and stay there are crucial clue that the market is week. My longer term feelings for bear still hold until it breaks the upper resistance envelop.

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12/13/2009

I really don't know how to start off this post, what I want is to wirte my view on a brief comparison between Dow Jones and Nikkei 225. I have actually started typing, then deleted, started all anew then deleted it again. Probably what I have derived does not point to anywhere. Anyway, I think starting off this way would be the best option I see.

I was looking at the indices, and I was particularly interested in Dow Jones and Nikkei yesterday. Both charts seems to be in total contrast of each other.

Fig 1 DJIA Weekly Chart

To me the direction of Dow Jones is quite clear. With the formation of the wedge, it should be heading south eventually. The question is: When? At present I have no idea. Base on the recent days movements, it seems to be dropping at a very low pace. Main reason I think is because it is still inside the wedge. It is also limited by the downward trend line which crosses the lower envelop by 1st Jan 2010. I guess if it decide to break downward, this might be the deadline.


Fig 2 Nikkei 225 Weekly Chart
A look at the Nikkei 225 found a different picture. This chart seems to be at the bottom of the chart. While market already moved much, it is still in bottom formation. Most importantly, this index has broken its downward trendline. This signifies an up trend from here.

If it is possible to buy Japanese stocks, I think now should be the time.

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12/12/2009

Of facts and anticipation

When I first started my interest in investment, my thoughts were to take interest in market news, thinking that if there is good news, the stock in particular will rise, vise versa, the counter will fall on bad news. I started reading the Business Times trying to make sense on what they were saying, taking into account that I am trained and an Engineer and have no knowledge on business terms.

My ex-company was listed then, it is still now. The management continuously giving us good impression of the company other than releasing news of company's achievement. That was a time when my comapny's share been falling for a while. The funny thing is that market reaction to such news were unexpected, at least by me. The company's share continued downtrend even with news of great potential growth for the company being anounced.

It was only until I started learning about a particular technique in market analysis ( in this case Technical Analysis) that I also learned about how market evaluate news release. The first thing my teacher said to the class on the first day of Technical Analysis was," there is no such thing as a saint in this world". True enough people don't act after the news release, they act before it was released. They anticipate a price movement ahead.

This conclusion can be easily proven by noting stocks running up prior to any news release. No matter what the law says, news leak and thus insider trading, it is more a matter if you are caught. This is also why Contrarion concept works.

So one objective of Technical Analysis is to detect the signals of such activities. If you cannot be the first beneficial party, at least you are secondary. Forget about Fundamental analysis, you are likely to be looking at past year data and not likely to know what's going on inside.

A rare Broadening Formation on NASDAQ

I have not been watching Nasdaq for quite a while. Part of the reason is because Nasdaq's significance is mainly on technological stock. Frankly, Tech Stock is almost dead in Singapore. I have been working in the Electronic sector which is also the technology sector, and life is certainly hard here as long as you remain local. Most of the tech companies closed down during the shake up in 2001-2003 and distributors here mainly depend on China Market to survive.


Fig 1 Nasdaq Daily Chart

While going through the indices, I happened to have a glimpse of Nasdaq and its latest formation attracts me. It is a broadening formation which sometimes called reverse triangle. According to the book "Technical Analysis of the Future Market", such formation is seen as a top formation.

There is not an exact measurement for this top formation, a rough estimate would be a 50% retracement of the bull wave. If we calculate the retracement base on this, I would say a mark of 1,739 be the target (base on the present setup).Anyway, let's see how it goes from here.

So if this is true, plus what I have been seeing in HSI, DJIA, markets are coming down. If the big boys are in trouble, needless to say STI and the Singapore market.

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12/09/2009

Belief system for Technical Analysis

I remember the time when I first ventured into Technical Analysis, my teacher has emphasised on one thing, "The chart is never wrong, if the market is wrong, you are wrong".

Over the years I have held on to this belief. I supposed not many people would unconditionally accept such comments without a single doubt. I guess that is what so different about me. My rule of learning is to never question the material while I am learning. It helps with the absorption of data.

Over the years, I came to understand how important my teacher's emphasis is. Believing that the chart is always right and it is me who is wrong if I did not get it right, it let me trust the charts. I doubt many of my class mates do. Many simply stopped reading the chart themselves and let others read for them. Some started to adopt a fundamental-technical mix which I believe would eventually become more confuse over their predictions.

So the question is: How true is this sentence? I don't know about others. For me, I fully vouch for it.


Fig 1 AUD Weekly Chart

Take AUD chart for instance, I have been reading this chart for quite a while and all this time seeing it developed, " like a flower slowly blossom infront of you" was what my teacher said. Yet, all these while I could not see a pattern already telling me its next destination.

It is only today that I find a huge upward wedge onboard and that AUD already broken its lower envelop. The target for AUD now is SGD115.197. I more or less know it should be descending but not know where, and only through this wedge thing become much clearer.

On a side note, going through all the forex chart gives me the impression that SGD is actually quite stagnant. Seems to me that the rise of USD against SGD have to couple with AUD fall against SGD. It is in fact AUD falling against USD while SGD remained constant.

Wing Tai - Patch

Did I mention that Wing Tai should be going down today? It has just formed a shooting star...... anyway, the direction should be confirmed if it is down today.

12/08/2009

Wing Tai - The one that got away

My earlier entry on Wing Tai mentioned that I came out of this counter on stop loss. I have set 1.67 as my stop loss and by the time I came out, it was 1.64. It was not my hessitation that cause the gap between my stop loss level and the price I actually released the stock. I was only away from my monitor for 20 minutes while Wing Tai plunged towards 1.64. Anyway, it was still a good move then because Wing Tai actually went to 1.59 after that. By then, the indicators were all at the bottom poising up, giving signal of "buy". Unfortunately it councide with STI poising for a reversal downward. I was bearish since then and real hessitated to re-enter the market. Well, partially it was also the structure of triangle creating the possibility of Wing Tai being at "B" wave. Naturally, the assumption would be wave C down.


Fig 1 Wing Tai Daily chart

Since then Wing Tai went no where except up. IT broke through the upper envelop of the triangle and in fact working towards its objective of 1.90. IT actually broke through 1.70 last Friday but I hessitated to act due to the potential hazzardous STI at the moment. I did not pursue. I guess this is one that got away....

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HSI pattern break down? Not just yet.....

For a moment last week when I saw HSI re-trace from the crash and entered the wedge zone, I thought to myself, "Not again, another case of pattern break down!" Under normal circumstances, once a chart broke out of a pattern the most it will do is retouches the envelop before moving on. Seems like HSI was not ready to move down yet.

...and the there was data black out, my service provider failed to update their data base throughout the weekend..... I only managed to get a full update just now.


Fig 1 HSI Daily Chart

I am using the HSI daily chart rather than weekly because the wedge looks better. The wedge is pretty straight forward. HSI has since retraced from its retracement. It is now again at its envelop. However, it is resisted by its 21 days moving average 22,171.

Weakness is also shown on RSI of the chart which is reversing at a lower amplitude. Let's just say it is doing a counterwave now, I assume it completed A and now doing the B wave, which should looks more like a abc pattern. The "B" now should be partial (I think) because it is a stright forward upthrust. I expect downward slide before moving back up one more time before it starts its wave C.

Now how am I to be sure that this is a reversal with ABC wave? Ian Copsey revealed in his book Integrated Technical Analysis mentioned that other than appearing on counter waves, wedge can also form on 5th wave. Base on the wave count this seems likely to be a wedge on 5th.

2,809

For some time now, I have been talking about 2,809. It seems to be a magical number and after mentioning and re-mentioning of this number for so long, I actually forgot how it came about. I am even at times doubt the number that I mentioned, looking at STI performance, I can't really blame myself for that.

It is not until recently that this number become more prominent to me. The STI has recently been getting very close to 2,809. The closest it got is today at a top of 2,807. I am in fact mesmerised by STI being so close to this number. Seems like STI is very scared of this 2,809 level. It has simply refuses to touch 2,809 or beyond that.


Fig 1 STI Weekly Chart

As I look at the STI weekly chart, it is really one that you love to hate. It is range bound withing an envelop that neither depict a rectangle, wedge, triangle flag, etc. The index simply crawl at an angle of about 10-20Deg, talk about recovery. I guess the politicians are the best indicators of the market, when they say recovery you can remove "re" and "y", just "cover".

You can't really esimate its projection base on the traditional chart pattern. I am all these while depending on the indicators which have been for some times showing divergences as STI "climb".

I did a trace on my blogs to find when I first started talking about 2,809. I really need to know how this is derived. Honestly, it is not that I am that fantastic on charting, I made many mistakes in my own forecast and I at times doubt my own reading. But 2,809 is so precise to where STI is nowadays, that got to be something.

My trace on the blog indicated my first register of 2,809 was titled Prediction on STI Daily dated 18th Aug 2009. It was actually derived from a Fibonacci calculation of fifth wave target base on the length of 1st to 3rd wave.

IF this is the case, are we seeing a reversal taking place now? Afterall, this is fifth wave target and A wave should be expected.

Objectively speaking, base on the weekly chart, Stochastic is heading up with limited top, RSI on the other hand is on verge of turning down. I see weakness in STI and likely to reverse. For now I would trust RSI a little more.

While I am still having the euphoria over how close I am this time in predicting an energy level. I will still have to assume the possibility of STI charging through this level. The envelop continues to slope up and for now its resistance is at 2,827. The 21 weeks Moving average on the other hand is supporting at 2,748, close to the 2,750 level.

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12/06/2009

OF Dow and STI

While I have more confidence on AUD and USD charts, I can't say the same to Dow and STI. The charts seems to be meeting the critical points. It is like either make or break kind of situation.


Fig 1 Dow Weekly Chart

The Dow on weekly chart is meeting the resistance from both a downward trendline and the wedge envelop resistance. While it has been trying to push through the barriers, there seems to be a lack of commitment to go through the motion.

The indicators are not helping neither, they are poising up but there is limited space on top. Neither Stochastic nor RSI has shown signs of divergence. Significant confirmation will likely have to come after this move, so this coming week would be very important to decide on its fate.


Fig 2 STI weekly chart

As far as I am concern, this bugger did not create any pattern that I recognise. There is not head and shoulders, no double top nor tripple top, not even triangles nor wedge. It is moving up gradually within its envelop (20Deg inclination?). To me it is sign of weakness but at the same time it is probably in consolidation mode. Only breaking through the envelop would we know if it is up or down.

As for now, both Stochastic and RSI are side way at the top, my notes has joted [monitor] mainly because it is stil undetermined.

On a personal side. Both STI and DJIA's move have made me vary about the market and I have staying away for a while. So even with recent shown of positive indication from Wing Tai that I have decided to forego. If STI turns, chances are Wing Tai will follow.

USD vs AUD for SGD

Much talk have been on USD to continue weakening while AUd going from strength to strength. Of course I am referring to the Channel News Asia(CNA) Forum on stock market. For one reason, at least the USD vs SGD has a direct effect on the stock market here. Many have claimed that the day USD rises is the day the stocks tumble. For me I am not too sure about the cause of such correlation since I am not a Fundamental in the first place. What I remember is that the demand of money denotes the demand of the stocks, if the investers want to invest into Singapore Market, they need to buy SGD thus SGD rises due to higher demand. So if SGD drops against USD, it means investment s flowing out.


Fig 1 AUD Weekly Chart

While many continues to be hype up with AUD, I would consider AUD to be very high for me. After all, what are the major bulk of AUstralia market to make its currency in such high demand. I think through the years, Australia depends more on its tourist industry than others for its economy. I went to Australia this May, while there are argricultural produce in the country, the cost for such produces is very high in the local market, and I am comparing with Singapore.

I see Australia to be highly uncompetitive in turns of its productivity thus its currency definitely do not worth this rate. Nevertheless, this is only my own opinion.

As for the charts, there has been continuous drop in the recent 2 weeks, the level seems quite significant. I really could not understand why when AUD stopped moving down last week that people claiming it to be strengthening. It is just pausing.

The way I see it, its Stochastic and RSI is already indicating divergence, the chance of further downtrend is high, my guess is 70-80%. The only wierd thing is its candlestick pattern which indicate an Harami. But there is still a need for confirmation.


Fig 2 USD Weekly Chart

While USD has been showing weakness lately, my bet is still on this currency. The only doubt I have is its potential double top signifying a target of SGD1.28 per USD.
I don't know probably USD has to fall till that level before it considers a reversal. At the same time there is a chance that USD might forego the "Double Top" ( meaning pattern break down) and reverse this instance.

Personally I am hoping this to be the scenary, one reason is because I have a small stake in it. No, I did not trade USD, I have an FD on USD, which is long term investment. While short term fluctuation might not affect me at all, it is still giving me the feel good sensation knowing that I am on the right side of the market.

On the technical side, Both Stochastic and RSI are reversing up with divergence. To me this is good sign. If USD go further down with both these indicators creating more divergence, it will even be a better sign for me. For the moments, the odds for me is good.

12/01/2009

DJIA and STI

While I see HSI is already in deep shit (pardon my language), DJIA and STI is stil holding on as we speak.


Fig DJIA Daily Chart

The DJIA daily chart is in fact showing weakness through its indicators, both Stochastic and RSI created divergence on Dow's higher highs, so to me it may be a bit of a risk to enter US market now. However, the Dow as defiance as ever, is making attempt to break the downtrend resistance. It is presently supported by its 21 days moving average at 10,261.


Fig 2 DJIA Weekly Chart

While the daily chart sees Dow breaking through the resistance, the weekly chart shows that there are leeways for Dow still. The resistance on weekly basis is at 10,501. So it is still possible for Dow to head there. This is supported by its indicators which poised a reverse up trend.

S I figure that it may still head for 10,501 with further divergence on daily chart. Still, coming down is a matter of time, of which Dow will deside.


Fig 3 STI Weekly chart

As for STI....Well, it is still stuck inside its slightly inclining slope. Seriously it is still undecided which way to do. Support is relatively good at 2,751 while resistance is climbing gradually. At least for this week, its resistance level is 2,818.

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HSI Reload..

Well, the title sound like one from the Matrix. In fact, tonight I made it a point to reload the HSI chart with my fingers crossed. Luckily the loading was success. So now I can keep a record of what I said on HSI in picture.

Btw, HSI managed to climb higher today, so how well did it perform as compared to what I have predicted?


Fig 1 HSI Daily chart

A first look on HSI by any chartist will notice the BIG wedge. According to a book that I have read, such wedges appears on 5th wave. So I can safely consider HSI to be completing its 5th wave.

The event in Dubai drove HSI to gap down below the envelop of the wedge effectively confirmed the wedge formation. The measurement of the wedge will lead HSI to 19,847.

The daily indicators so far seems to support a retracement upward since they are both at the bottom. However the weekly chart would tell a different story.



Fig 2 HSI Weekly Chart

Most of the time a wedge formation in the daily chart might not be visible in the weekly chart. However, the wedge is carried to a higher time frame in this case.

The indicators here are showing that HSI is in the midst of falling, meaning it has some more to go before it will stop.

I am only interested to know with Dubai coming to a "close", will the set up break down?

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