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.