Wednesday, September 12, 2007

Charts dun lie

Today DMX Tech rocketed up towards north. I posted this chart a few weeks ago when it was showing huge A/D bullish divergence from price action. From candlestick charting, i knew that there was a great chance that it has bottomed out as it tested $0.44 for many times and 2 dojis were formed. I din expect it to rebound back so fast. Woah !

DMX Tech Chart:


Contary to what i expected, F&N broke through the triple resistance of the 50d and 100d EMA and the 200d MA. The market is always correct and i am wrong. Now F&N seems like a good buying opportunity now with those 3 moving averages acting as support. A retracement with low volume would be an excellent point for a trade entry.

F&N chart:



0 comments: