Technical rebound has arrived

I wanted to post yesterday night but i had problems putting up the charts with Blogger yet again so i din post. But i guess it was good in some ways as i can blog about the technical rebound for the latest closing of the Dow Jones.

The Dow Jones rallied strongly last time with by rebounding off it's channel support with a long white shaven candlestick with heavy volume. The technical rebound which i have been expecting has arrived finally. The technical indicators have already suggested that a rebound will take place soon since the MACD histograms and lines have touched the prior levels and the RSI seems to be showing bullish divergence as it has been trending sideways while the index suffered a huge drop.

Dow Jones Industrial Average:


For the Straits Times Index, it should be supported at it's current level due to the confluence of the 200d MA and the fibbonacci retracement level of 50%. These are some of the strongest supports that are used in technical analysis. Furthermore, the MACD histogram have now touched the prior correction level.

Straits Times Index:


Even though the technical rebound is here, this may not spell the end of the correction. Both the Dow Jones and the STI may rebound off their channel resistance so we gotta see what will happen subsequently. Only a higher high and a higher low in index action can confirm that a uptrend is back in place.

Currently i am looking at a few counters. These are asia env and bio treat. These counters are not likely to rally up a lot since they are not in play. What attracts me is that despite the 3 dowm gaps that the STI has suffered for the past few days, these counters dun seem to display a gap down and is still maintaining a sideway trend. Furthermore, they are showing bullish divergences with their technical indicators and are now both supported by trendlines or their previous support level.

Asia Env:


Bio Treat: