We are at near a turning point. No doubt about it. The forum are abuzz and the analysts are giving confusing and conflicting advice. What about the chart? I often use Hong Kong (HSI) as I feel that the market is a good proxy for the Asia market. According to the chart, the upward trend is still intend for Hong Kong in this case. However, there are signs that the rally is exhausting or exhausted with volume drying up and unknown 3rd tier stocks are in play in the SGX. A serious correction will probably see HSI at 15000 which is an approximately 15% drop. If it goes beyong 15000, than we are in for a clear double bottom which I have been talking about some time back. For now, we can take some profits off the table and watch in glee if the market drops. So my conclusion, the market will move sideways for a week or so before the buyers give up and the bear takes over.
Monday, June 08, 2009
Correction Imminent? Charts Says 50/50
We are at near a turning point. No doubt about it. The forum are abuzz and the analysts are giving confusing and conflicting advice. What about the chart? I often use Hong Kong (HSI) as I feel that the market is a good proxy for the Asia market. According to the chart, the upward trend is still intend for Hong Kong in this case. However, there are signs that the rally is exhausting or exhausted with volume drying up and unknown 3rd tier stocks are in play in the SGX. A serious correction will probably see HSI at 15000 which is an approximately 15% drop. If it goes beyong 15000, than we are in for a clear double bottom which I have been talking about some time back. For now, we can take some profits off the table and watch in glee if the market drops. So my conclusion, the market will move sideways for a week or so before the buyers give up and the bear takes over.
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1 comments:
Superb posting. Hope it comes true.
*Correction, it WILL come true.
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