Weekend review again !

It is the time of the week to forecast the probable trend for next week yet again. I usually post on Sat cos on friday night, the Dow Jones still got one more closing to go, so there is no point to do any review since the Dow Jones always lead the Straits Times Index.

Anyway i did read up on Decipher's blog which is the blog named art of growing money yesterday. He dun post that frequently in his blog nowadays but he wrote a very detailed and good post on his blog for his latest posting. I am learning quite a lot from his latest posting and he is offering some insights which i have missed in my charting.

For the Dow Jones, it closed with a long black candlestick with heavy volume on the latest closing. Furthermore it broke the 50d and 100d EMA in one single closing. However a higher high and low has been confirmed so going by Dow theory, we are in a theoretical bullish phase though in my opinion, this is a weak bull phase.
I noticed that a few closings ago, there were a pair of black and white shaven candlesticks. These candlesticks can act as short-term support going by Japanese candlesticks charting so i drew a horizontal line at this level. Furthermore this level is the level where the higher low occured so this may act as a support again.

Dow Jones Industrial Average Chart:


For the Straits Times Index, a breakout of the wedge formation has been confirmed following a breakout above the 1.5 years old trendline. But notice how the volume has been declining so volume is not confirming the price action. Thus this bullish phase can be considered to be weak. The index is now above all the important EMAs and MAs so this is quite significant. If STI finds support on the trendline by forming a bullish candlestick on it, it may be a good time to place a quick long.

Straits Times Index Chart:


Honestly, i was getting ready to place a long if the Dow Jones did not break it's horizontal support near 13252. But alas it did so i am not going to review any counters. I do think that there is a chance to make a quick profit cos we are in a bullish phase though it's weak one. Longs may be placed but i think one should exit the moment the Dow Jones and STI hit their major resistance level. That will correspond to a DJIA level of near 13700 and a STI level of 3650.

"The market will exist longer than you so dun be afraid of losing out on any opportunity for there will always be opportunities coming your way."