Weekend review

Kinda sad to see mimosa restricting his blog to invited guests only. He has been offering very good analysis of the market and i often visit his blog to learn more stuff. Well, i just lost one source of learning about the market :(

Looking at the chart of the Dow Jones for the friday's closing, it managed to break the resistive trendline that was being resisted on 3 occasions and found support near the 100d EMA which happens to correspond with the support level of 13252. This is definitely a good sign as now we have seen the Dow Jones making a higher low and it has closed above the 50d EMA. The next resistance is at 13700 so there will be some chance perhaps to add in counters and hold until the Dow Jones reach 13700.

Dow Jones Industrial Average Chart:


The chart of the Straits Times Index also displayed quite similiar technical factors as the Dow Jones. As said in my previous forecast, the STI closed between the 38.2% and 50% fibbonacci retracement. Looking at the chart of STI, i saw something which i haven seen for a long time and that is both price action and volume are increasing together. I consider this to be quite bullish as volume and price are valued technical indicators in classical technical analysis. Any increase in price action should be accompanied by increasing volume. However, this was only for the last 3 closings so more observations over the subsequent closings are needed. A close above the 50d EMA and the trendline would be very significant.

Straits Times Index Chart: