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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.

6/11/2010

Divergence on British Pound

I worked on a tedious case today. It is not difficult but tedious because of the complexity of the customer's requirement.

Imagine a customer who wants free service to design for rediculous requirement, each conflicting with one another. He needs a system requiring 23W power yet can fit into a space of 20 x 10 x 200 mm. The 2 crucial components alone would take up a space of 25 X 25 X 13 and 25(dia)X30mm! He wants guaranttee of component lifespan of 50,000 hours when vendors can only guaranttee 2,000 hours of operation.

In the end, I have to give him the specs that we can achieve and he has to choose if he will take it or not. This is simply because no one want to take responsibility of rejecting a customer. My vendor won't want to do it, my Field Application does not want to do it, so I have to...Okay, that is a little technical, may be its better to go back to the charts.


Fig 1 British Pound Monthly Chart

As I went through the British Pound vs SGD, I can't help but to notice that there is a divergence between the chart and RSI on Monthly basis. It seems like BP is turning up. In fact BP seems to have completed a C wave with a 5 waves down. I believe it is at the bottom of the bottom formation. We should see either a reverse head and shoulder or double bottom.

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