Similiar charts

In my last post, i posted that Dow Jones will have a weak rally due to volume not confirming price action. Today's closing of the STI is just a repeat of my previous post. From the chart of STI, the price action went higher but the volume is very light. Furthermore, it rebounded off the 1.5 years old resistive trendline. So my conclusion is that this rally for STI is very weak. We will be seeing how STI will test the upside gap soon.

Straits Times Index Chart:


I have been feeling very baffled by the chart of DMX Tech. It's my 1st time encountering such a chart like this. This is because of 2 reasons. The 1st reason is that the A/D line is showing huge bullish divergence and yet the price action continues to go lower. So accumulation is probably taking place. The 2nd reason is that when the price action is moving down, it formed a lot of trend reversal candlesticks at possible support levels, mainly at $0.545 and $0.5 but yet the downtrend continues. I can probably count like 5 hammers and 2 dojis in the yellow area i highlighted. I been observing that hammers work well for STI counters and whenever hammers appear near support levels, it is likely a bottom has been reached and a trend reversal is highly possible. So that's why i find this chart so strange. Price action precedes news so we can probably expect to hear some fundamental news soon.

DMX Tech chart:


I am gonna sign off this post with a very important principle in technical analysis and that is
"Volume confirms price action". It can probably save my life in the market next time :)