A reveiew on SSEC chart

It is 10:00PM at night and I am now in Shangri-la Golden Sand resort. My wife and children are in bed right behind me while I am keying this entry at the work desk in the hotel room. One good thing about hotels and resorts in Malaysia is that they all come with free internet access and WIFI service. This is one service which hotels and resorts in other country requires a price to pay.

While one may think, " Wow! Good life you have there!" Its not actually as good as you might think. If you search the hotel location on Google maps, you will realise that it is way out of the town area. A taxi ride one way will need MYR30 per direction and it takes almost 30-40 minutes to reach even the outskirt of the town.

It is also highly humid here and it is a rainy day today. We were walking out for dinner and it is as if we are soaked in water when we came back to the hotel. It is not because the rain was heavy, the moisture on our body simply refused to leave.

The place isn't that great in the day because all shops are closed. It is only in the evening time the street side market started to open, which ended up looking like Phuket or Bangkok's night market. However, the ambience is a far cry from that of Thailand. There is not enough space for pedestrians walk and you are on the road from time to time. cars just zoom by and we can't help but to feel insecure most of the time here.

We went for dinner at Eden. It is a well known restaurant in Malaysia. We noted that it is the last night of opening at the Ferringhi's branch because the place is going to be renovated and re-opens only by July. So We thought it might be a good idea to eat at the restaurant on its last day of opening, and boy were we wrong.

The restaurant did not take in any stock, so they run out of fish, prawn, crab and even chicken. We just managed to order a few dishes which was still available, nevertheless, the dinner tasted quite all right, and ambience were satisfactory. We ate right next to the beach, seeing people para-gliding, riding horses, jet-ski, etc. The only problem was the pesy flies disturbing our dishes.

Anyway, I have decided to type something on the shart again. At first I was really finding little to talk about, STI and DJIA are where I expect them to be, nothing much neither on USD. Nikkei just started its way down after the wedge break out. So I took a look at SSEC.


Fig 1 SSEC Weekly Chart

My last entry noted a triangle broke out for SSEC and I was puzzled about having only abcd waves while lacking the e. When I looked at it again it is different this time round.

On weekly basis, because of the removal of some details, the major waves look much clearer. The down trend from OCt 2007-Oct 2008 was no doubt the A wave, the move from Oct 2008 till Aug 2009 was the A of B wave, and from then till now is a B of B wave. The B of B itself is a 3 wave pattern which completed a, b and now doing the c.


Fig 2 SSEC Daily Chart

Looking into the finer details of the Daily Chart, the triangle is not so valid since the lack of the e wave. However, I notice another pattern of a head and shoulders with a smaller left shoulder.The pattern already completed and SSEC broke out of the neckline at 2,973. The objective of this head and shoulder is 2,419.

Of course it won't head there in a single move, it still has to go back and connect back with the neck line before going further down. Already it is meeting the Gann Grid support (+ve gradient) and the indicators on both Daily and Weekly basis are at the bottom. So this index is poising to move north. I think it is likely to follow the positive gradient of the Gann Grid and would need to question its position again by 2,924 (Gann Grid Apex).