Hi-P pattern failure

Dow broke it's resistance of 13707 and close strongly above it. This is significant as the level of 13707 was resisted on 3 previous occasion so a close above it is definitely a good sign. On to the STI, although it ended with a black candle, it managed to close at 3660 which was the previous resistance twice so i reckon this level will hold as support for some time.

Anyway back to the Hi-P chart posting i made, i must say it has been disappointing. Despite a confirmed double bottoms with a strong close above the previous resistance, it fell below this resistance with increasing volume as the price dwindled downwards. A decrease in price with increasing volume is definitely bearish. It has been a learning experience since i could not see definite any technical signs that would lead to such an outcome. Once it broke $0.98, i knew something was definitely wrong already. Now currently finding support at 50d EMA and the trendline but the drop from the point of breakout to the current price is already around 5% so a pull out will have to be made strictly according to the trading rules.



This left me pondering with the question and that is should i buy on dips when it's retrace back to the neckline or buy immediately on the breakout. The thing is that not all breakouts will dip back so if u dun buy on the breakouts, u will miss on riding the uptrend. So far, i observe that dips back to the neckline are quite common since due to the selling by traders or investors who got stuck on the previous resistance level. Well, missing out on riding a uptrend formed by a reversal chart pattern ain't easy especially when u know and u know that chart patterns have a high probability of forming a reversal pattern. But den, there will always be stocks to buy lah so miss one stock can always buy some other stock in the future :)

DMX-Tech : Spotted a breakout of an ascending triangle. By far one of the common patterns seen by me so far. Noted that the 50d EMA crosses above the 100d EMA a few days ago.



Currently looking at steel and property sectors. :)