Weekend review of DJIA and STI

Dow Jones look pretty suspicious to me. It seems like a healthy retracement is taking place with the declining volume being seen. On the other hand, I was expecting it to test the trendline as a supportive trendline with the retracement at least but it just fell through the trendline as though the trendline was not there. I am not certain about the direction as of now but it seems to me that the breakout of the resistive trendline was just a facade and this breakout did not carry on with strength.

Dow Jones Industrial Average:


I went to Bear's blog and took a look at his latest posting and his sentiments were the same as mine. It is strange that DJIA had 3 black candlesticks in a row while the STI had 3 white candlesticks. STI seems to be diverging from DJIA and i suspect this is due to the bullish sentiment in the s-shares. If that is the case, we should see STI converging back with DJIA soon. Once again, the breakout of the resistive trendline look suspicious since there was no volume to support the rally after the breakout. Maybe one should take a waiting stance first.

Straits Times Index:

Not just another technical rebound

Dow Jones broke out of it's major resistive trendline two closings ago and it ended with a doji candlestick. In my opinion, this is not just another technical rebound which we have seen for the past few months. Usually after DJIA ends with a huge white candlestick, the next day will likely to be a black candlestick but for this time round, we are only see a doji. However, the volume looks suspect since it is so light and this is not what is expected of a strong rebound. The next resistance level is around 12785 which was the resistance on two previous occasions.

Dow Jones Industrial Average:


For the Straits Times Index, it broke out of it's resistive trendline too and it was accompanied by heavy volume. There is a gap resistance at around 3000 but i think it should not be a concern since STI is quite bullish now judging by the volume and the gaps being formed.

Straits Times Index:

Weekend review of DJIA and STI

Currently, Dow Jones is near the major resistive trendline. I was expecting it to dip back to it's major support level after thursday black candlestick closing but it rallied on friday but failed to close above the major resistive trendline. Last friday's white candlestick was done with heavy volume so that adds to the risk of going short but on the other hand, since DJIA is now near the major resistive trendline, there is a good chance that it will rebound off this trendline. Furthermore, notice that for the last 3 days, DJIA failed to hold fibbonacci retracement of 61.8%.

Dow Jones Industrial Average:


For the Straits Times Index, the support level seems to hold and it remains to be seen whether the minor resistive trendline will hold as a resistance level. Otherwise, nothing much to comment since STI takes it's cue from DJIA.

Straits Times Index:


I been tracking Sembmar on my watchlist. Currently, it seems to have rebound off the major resistive trendline and notice that the black candlestick was accompanied with heavy volume.

Sembmar:

DJIA hitting major resistance

Dow Jones will be testing a major resistive trendline tonight and we shall see whether it can break through this trendline. This trendline has held for 3 occasions and that adds to the strength of this trendline. Candlestick theory will help to decide whether this trendline is likely to hold this time. I am watching out for a doji or an inverted hammer with long wicks this time. It will be a bonus if the Dow Jones can close slightly higher on green tonight.

Dow Jones Industrial Average:

Weekend review of DJIA and STI

I been busy with my school work so I have not been updated my blog for the past week which i apologize for that. For the past week, the piece of important news that came out was that the Fed will pump in money and that cause the Dow Jones to register it's highest gain in 5 years. On hindsight, i should have shorted the rally since following the rally, an inverted hammer was formed on the trendline following the breach of support for the descending triangle and i failed to see that on my chart.

Currently, DJIA is being resisted by a minor resistive trendline and this was done with heavy volume. DJIA is now in the middle of a major support level and a major resistive trendline. My trading strategy still remains the same as my previous post; short at major resistance or breach of support.

Dow Jones Industrial Average:


For the Straits Times Index, the chart is quite similar to that of the Dow Jones so I am not going to comment much on it.

Straits Times Index:


The next date to look forward to will be the Fed meeting which is on the 18th of March or rather, this coming tuesday. We shall see what happens next but I am beginning to have doubts of the ability of the Fed meeting to swing the market up and down since the market is getting relatively immune to it.