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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.

1/19/2010

DJIA: Divergence on indicators

I have been waiting for divergence on DJIA the last round. As the no indicators have not shown any divergence then, I reckon that there would still be some upward movement left for DJIA. As I check up the chart for DJIA today, it seems to me that divergence is observed on the daily chart for Stochastic and RSI. However, the divergence is very mild and would be difficult to note unless with the help of software. So if the divergence is valid, is DJIA reversing?


Fig 1 DJIA Daily Chart

The divergence is only observed not only on daily but also weekly chart, so a move follows ( when down turn ) would be quite sustainable. I feel that DJIA is about to break the envelop support of the wedges ( yes, there is a BIG one and a small one ), when that is done, it would probably be on its way down.

In term of wave count, it is not straight forward and rather tricky. I can only say that this is the best fit I can find. The whole thing would be a huge Zig Zag ABC wave and not a progressive 1-5 wave pattern base on my perception.

Now the chance of going down is much higher than last week.

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