Technical Analysis Chart Training

DJIA to Fall 4,000 Points in 2012, Granville Says

2012-01-25T10:55:00.002+08:00

Jan. 23 (Bloomberg) -- Joseph Granville, a technical analyst who has been publishing the Granville Market Letter from Kansas City, Missouri, for more than 40 years, talks about the outlook for the U.S. stock market. He speaks with Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Watch video at http://www.bloomberg.com/video/84758540/

Joseph Granville - On-balance volume

2012-01-25T10:40:00.004+08:00

On-balance volume (OBV) is a technical analysis indicator intended to relate price and volume in the stock market. OBV is based on a cumulative total volume.

Total volume for each day is assigned a positive or negative value depending on prices being higher or lower that day. A higher close results in the volume for that day to get a positive value, while a lower close results in negative value. So, when prices are going up, OBV should be going up too, and when prices make a new rally high, then OBV should too. If OBV fails to go past its previous rally high, then this is a negative divergence, suggesting a weak move.

The technique, originally called "cumulative volume" by Woods and Vignolia, was later named in 1946, "on-balance volume" by Joseph Granville who popularized the technique in his 1963 book Granville's New Key to Stock Market Profits[1]. The index can be applied to stocks individually based upon their daily up or down close, or to the market as a whole, using breadth of market data, i.e. the advance/decline ratio.

OBV is generally used to confirm price moves.[4] The idea is that volume is higher on days where the price move is in the dominant direction, for example in a strong uptrend more volume on up days than down days.

Info Source http://en.wikipedia.org/wiki/On-balance_volume

Gold Spot XAUUSD Cross Channels Analysis

2011-11-10T12:17:00.005+08:00

September 2011 was an exciting and an interesting month for gold trading. All time high was established at 1921.14 on 6th September 2011. The formation of this second peak heralded a potential double top chart pattern which was confirmed when the support at 1703.13 broke on 23rd September 2011. As swiftly as the double top confirmation was proclaimed a new trough was formed the next trading day 26th September 2011 at 1532.80 at the violet support zone as indicated on the chart.

The seed of a new potential upswing was thus planted at the tail pivot of the giant hammer candlestick bar. The struggle to advance was met with strong resistance at the red channel zone and the testing of the violet support channel has proven that a break below the violet channel will signal a potential major fall in gold price.

As the Eurozone crisis persists gold regained its upswing momentum and emerged above the red channel zone into the green double top support channel area. A successful challenge above this green channel will see imminent resistance at the blue channel region. A Golden Christmas and Glittering New Year awaits only if a strong upthrust decimate the bears stationed here.

A retest of 1921.14 all time high is back in play if the blue bears are defeated. 2012 will then see gold price approaching the brown upper channel at 2000 and above.

Conversely, if the current support at the green channel gives way a retreat downwards back to the red channel is expected. Strong support can be found at the violet channel region. A breakdown from this strong support area will plummet gold price towards 1500 and below.

Dow Jones Industrial Average Weekly Chart Testing Critical Supports

2011-08-29T16:07:00.008+08:00

1. Testing of critical 200SMA weekly support in progress. A successful rebound from this support will be challenge by the pink immediate resistance zone.

2. The 200SMA weekly confirmed the complex head and shoulders reversal pattern formed in 2007 and 2008. In 2010 it confirmed the failed head and shoulders formation.

3. DJIA has retraced towards the lower channel support region. There is a high probability that the lower green channel support may be tested. Immediate support is indicated by the green zone.

4. Any upward surge above the pink immediate resistance area will see a retest of the 12000 milestone. Further upthrust will reclaim the red bold downtrend resistance line followed by the next resistance shown by the light blue zone.

5. Conversely if the green immediate support band give way the 10000 milestone will be tested followed by the next support region indicated by the yellow rectangular box.

Genting Bearish Engulfing Pattern

2011-04-27T22:57:00.002+08:00

Bearish Engulfing candlestick pattern formed as price approached strong resistance zone as indicated by the red bear icons. High probability that there will be a test of both the lower channel support and the gap support shown by the red rectangle zone. A weak bullish support may see further decline towards the Ichimoku cloud. A breakdown below the bold blue 200 EMA support will most probably signal further declines.

Global Logistics Properties 30 mins chart Testing Critical Supports

2010-10-25T17:23:00.009+08:00

Critical orange support and red dual uptrend support being tested on 30 mins chart. Support failure here will result in further declines. Conversely, a successful rebound will probably test previous resistances.

Potential Supports

1. Blue support band

2. Pink support area

3. Green all time low major support belt

Potential Resistances

1. Ichimoku Storm Cloud

2. Resistance band at 2.30 to 2.29

3. All time high peak resistance 2.33

Yanlord Testing Potential Reversal Zone

2010-09-29T11:07:00.005+08:00

Yanlord is testing the red bold rectangle potential reversal zone. A successful rebound within this zone will probably propel price towards the blue upper channel resistance at around $1.80 and may retest the higher resistance of the red band at about $1.90

Support failure of the red rectangle zone will probably find new support at one of the potential dotted support lines as indicated on the chart.

Genting Channel Within Channel

2010-09-16T19:37:00.001+08:00

Resistances

1. Upper dual resistance band of blue minor channel

2. Upper dual resistance band of red major channel

3. Milestone $2.50

Supports

1. Natural psychological support $1.90

2. Orange support zone

3. Green support zone

4. Lower dual support band of blue minor channel

5. Gap Support Band $1.30 to $1.35

6. Lower dual support band of red major channel

Sinotel Testing Ichimoku Storm Cloud

2010-09-14T12:21:00.003+08:00

Resistance Zones

1. Immediate Resistance Ichimoku Storm Cloud

2. Dual Green Downtrend Line

3. Red Resistance Band

4. Upper Blue Channel Resistance

5. Dotted Blue Resistance Band

Support Locations

1. Immediate Ichimolu Storm Cloud

2. Orange Support Zone

3. Lower Blue Channel Support

4. Late May Early June 2010 Congestion Region

5. 30 cent Milestone

Z-obee Testing Neckline Support Zone of Complex Head and Shoulders Formation

2010-09-01T21:48:00.005+08:00

The high probability prediction of a multiple right shoulders formation was posted on 7 July 2010. This right multiple shoulders pattern has been confirmed and further weakness had plummet price towards the neckline support zone. The decline within the blue down trend channel is now testing the neckline support zone of the complex head and shoulders formation.

Upside Resistances

1. Immediate resistance of the upper boundary of the blue channel

2. 40 cents milestone

3. 43 to 41.5 cents resistance belt

4. Right multiple shoulders resistance band

Downside Supports

1. Immediate support of the lower boundary of the blue channel

2. Red neckline support

3. Mid June 2010 trough support at 32.5 cents

4. 30 cents milestone

5. Strong Green Support Zone

DJIA Testing Potential Diamond Trendline Support Zone

2010-08-31T20:13:00.007+08:00

Choppy swings continue to plot the peaks and troughs of the giant diamond formation.

Upside Resistances

1. Upper resistance zone of green dotted channel

2. Green dashed down trendline of the diamond

3. Green bold down trendline of the diamond

4. Blue dotted resistance zone

5. Peak of diamond top

Downside Supports

1. Red dotted support zone of the red upper channel trendline

2. Lower support zone of green dotted channel

3. Orange dashed support belt

4. Red dashed median band of the red channel

5. Lower support of the red channel

Take note that any retest of the diamond top may result in a potential double top scenario. Further upward strength will confirm a continuation diamond pattern.

Conversely, if the lower support of the red channel fails a diamond top pattern will be confirmed and the index will probably plummet towards 8000. If weakness persists at this region a retest of the March 2009 low is imminent.

Yanlord Gravestone Doji Double Inside Day Compression

2010-08-29T18:43:00.003+08:00

The double inside day compression pattern denotes a potential breakout scenario. Take cue from the direction of the breakout. Upward breakout will result in a rebound from the immediate support of the dual upper boundaries of the blue channel and challenge the orange resistance zone. If the orange resistance zone is cleared the red bold dual resistance band will be tested.

Conversely, a downward breakout will demolish the immediate support of the upper boundaries of the blue channel and test the red dotted band support zone. If further weakness persists support will most probably be established at one of the following support zones:

1. Lower support boundaries of the blue channel

2. Green trendline support

3. Congestion rectangle 1.59 to 1.56 range support

4. Double bottom buffer zone

CapitaMalls Asia Upper Channel vs $2 Milestone Support

2010-08-29T15:22:00.005+08:00

25 Aug 2010
Doji rebound from orange support zone

27 Aug 2010
Doji once again as indecision returns. A potential challenge to test the upper channel resistance is imminent with DJIA good closing figures on Friday.

Any breakout above this channel resistance will retest red resistance zone followed by green dashed resistance line. A strong breakout above the green dashed line will probably herald a change in trend from down to up.

Take note that the orange support zone is a major support that has been tested 4 times and a breakdown below this zone will retest the next support at the green zone.

Genting Channel Projections of Bowl Breakout Pattern

2010-08-17T14:33:00.004+08:00

Bowl pattern breakout currently testing dual resistance of median zone of the red channel. Bowl breakout measured move target is around 1.80 but needs to punch through red channel median resistance zone. A successful breakout above red median zone will test blue channel dual upper resistance band.

Support zones for pullback may be found at the following locations

1. Lower dual support lines of blue channel

2. Red channel lower support

3. Green gap support zone

4. Mid marubozu support at 1.40

5. Light blue gap support area

DJIA Potential Head and Shoulders Clone Within Potential Diamond

2010-08-12T20:01:00.004+08:00

Pattern within pattern fornation being created by the DJIA. Immediate support is the pink dotted support zone. A rebound from this pink zone will probably be halted by the blue descending resistance joining the peaks of the diamond top head and the peak of the right shoulder of the potential head and shoulders clone. In the event of an unexpected breakout above this descending resistance the upthrust will encounter next resistance at the light blue dotted zone. If further advance continues a retest of the diamond top head peak may result in a potential double top pattern.

Conversely, further weakness below the pink dotted support zone may find support at the green dotted support zone. A breakdown below this zone will confirm the potential clone head and shoulders pattern and the potential diamond top formation.

Noble Doji Indecision Near Critical Support

2010-07-28T21:57:00.004+08:00

Since top reversal on 18 Mar 2010, the major trend is down. Currently trying to bottom and turn upwards but with massive indecision and strong downward pressure.

Critical green dash support zone must hold for any chance of a rebound. Any upward move will probably be challenged by the following resistances

1. Red dual resistance zone of the upper channel

2. Bold blue 200 EMA

3. Ichimoku Kumo Storm Cloud

4. Bold green 200 SMA

Conversely any breakdown below the green dash critical support may find new support at one of the following

1. Red dual support zone of the lower channel

2. Blue down trendline

Capitamalls Asia $2 Milestone Support

2010-07-27T23:10:00.005+08:00

Since topping at the all time high peak at $2.75 price has been trapped inside a downward channel. Any breakdown below $2.00 will probably see a retest of the 1.95 to 1.90 support zone.

The downward dual resistance upper channel must be overcome if price wants to move higher. First peak resistance to clear is $2.11 followed by $2.22 before an uptrend turning is established.

DJIA Enters Potential Resistance Zone

2010-07-15T20:44:00.005+08:00

Doji halted advance inside potential resistance zone demarcated by green dotted and green bold diamond resistance lines. Any surprise upthrust above this green resistance zone will probably encounter strong bear defences at the light blue dotted resistance band.

A pullback towards the red support of the diamond is expected if the diamond trading pattern script continues to play accordingly. Take note of any breach of the orange dotted support area as this may be the start of a long term downtrend.

Z-obee Potential Complex Head and Shoulders Formation

2010-07-07T21:53:00.005+08:00

The complex head and shoulders pattern took about half a year to form and is still a work in progress. A breakout above the 41.5 to 41 cents immediate resistance band will probably see the creation of a multiple right shoulders pattern similar to the one on the left of the head. The blue dotted resistance zone will probably halt any advance above 41.5 cents.

Any weakness that drops below the 39 cents immediate support will find the next support region at 37 to 35 cents. If further weakness persists and if the red neckline breaks strong support is expected at the green support area.

Metastock Equis - Stochastic Osc - Expert System Exploration List as at 6 July 2010

2010-07-07T02:39:00.003+08:00

This Exploration uses classical interpretations of a slow stochastic to generate a list of securities that meet either buy or sell conditions.

A buy signal is indicated by a 1 in the first column of the Exploration report. A sell signal is indicated by a 1 in the second column.

Free trial for Metastock is available at www.metastock.com/tacttrial

DJIA Critical Diamond Support Being Tested

2010-07-05T00:41:00.007+08:00

Hammer followed by hammer clone testing red diamond support. Closing below the red support indicates potential for further weakness. The hammer and its clone seems to suggest a probable rebound may happen. If no confirmation candlestick bar appears this week to support a rebound a drop into the lavender channel will probably take place. A drop into this channel will confirm the diamond top pattern and will result in further weakness.

Take note that if a hammer confirmation formation appears any upward move will probably be challenged by the green dashed diamond resistance line followed by the green bold resistance line. A successful breakout above these green resistances is highly remote. Any miraculous breakout here will result in a diamond continuation pattern and more upward swing is expected.

SGX Stocks Hovering Near 200 Days Simple Moving Average

2010-06-25T02:35:00.004+08:00

The 200 SMA is used to demarcate bull zone from bear territory. Statistics have indicated that long positions above this line favours the bulls and short positions below this line provide better odds for the bears.

You should add this moving averages to all of your charts in all time frames. Yes. weekly charts, daily charts, and intraday (5 min,30 min, 60 min) charts.

The 200 SMA is the most important moving average to have on a stock chart. You will be astonished at the frequency a stock will reverse in this region.

When writing scans for stocks, you can use this as an additional filter to find potential long setups that are above this line and potential short setups that are below this line.

The list of SGX Counters Hovering Near 200 SMA was an exploration result written by using Metastock . Stay alert and be nimble if the counter you are trading appears on the list posted above. Expect high volatile swings as the stock struggles to decide whether to remain as a bull or tranform into a bear and vice versa.

Metastock free trial available at www.metastock.com/tacttrial

Sinotel Testing Gap Resistance

2010-06-16T09:29:00.005+08:00

Testing of light blue gap resistance in progress. A successful breakout above this gap resistance will challenge the following potential resistances

1. Green upper channel resistance boundary
2. Pink resistance belt
3. Ichimoku Kumo Storm Cloud
4. Upper red channel dual resistance zone

Any pullback will probably retest the following support zones

1. Green support band
2. Lower green channel support
3. Milestone at 30
4. Lower red channel dual support zone

Stay alert and be nimble as market continues to roller coaster.

DJIA Line Chart Half Diamond To Full Gem

2010-06-15T18:17:00.005+08:00

The orange half diamond formation mentioned in the 6 June 2010 posting has been transformed into a sparkling gem . A breakout upwards will confirm a reversal diamond pattern. The upthrust will challenge the formidable moving average ribbon bands and will probably be halted by the red trendline.

Conversely, a breakdown below the orange diamomd support confirms a continuation pattern and will probably result in more downward declines. A drop below the blue trendline will test the lavender and the green horizontal support levels.

Genting Approaches Double Bottom Measured Move Target Projection

2010-06-15T13:24:00.008+08:00

After clearing above 1.07, the light blue immediate resistance is the next band to overcome. This band marks the projected target for the double bottom breakout confirmation based on the difference between the pink support and the 97.5 milestone. A strong breakout above the immediate resistance band will probably test the green resistance zone followed by the orange resistance region.

Take note that any pullback from the red upper channel dual resistance lines will retest the lavender immediate support area. Further weakness may find support at $1 .

Equis Metastock MACD Scan List as at 11 June 2010

2010-06-13T21:39:00.004+08:00

The Equis - MACD - Expert System is available as a trading system in Metastock. This exploration scan shows MACD Buy/Sell signals (MACD crossing above/below its 9-period EMA) with a 1 in either Column A or Column B.

Additionally, it finds stocks that reflect the MACD being in an overbought or oversold condition, which is reflected in Columns C and D.

The list posted above has been sorted by top volume. More info about Metastock available at www.metastock.com/tact

Free trial for Metastock 11 available at www.metastock.com/tacttrial

DJIA Range Bound Between 200 MA and Diamond Support

2010-06-11T19:02:00.002+08:00

As expected DJIA is trapped between the red support of the potential diamond pattern and the dual resistances of both the 200EMA and 200SMA. A strong upthrust above these 200 moving averages will most probably be halted by the green resistance of the potential diamond formation.

The red support will probably be tested again if more shocking news are released. The diamond will be negated if there is no clear breakout by the time the index reaches the apex which is tentatively around mid Oct 2010.

Healthway Doji Pondering Entry Into Bear Zone

2010-06-11T13:18:00.004+08:00

Doji contemplates invasion of bear territories. Blue bear standing guard at the bold blue immediate resistance border. A bull raid above this boundary will meet strong bear defences at the red upper channel dual resistance lines.

Immediate support is 17.5 to 17 followed by 16 to 15.5 support zone. Next bull support is the 14 support line. Strong bull support is at the red lower channel dual support lines.

China XLX Testing Downtrend Resistance Slope

2010-06-10T15:03:00.004+08:00

4th attempt at breaking upwards from the bold red dashed downtrend resistance slope in progress. The red down arrows indicates previous failed breakout attempts. A successful breakout must clear the mmediate light blue resistance band and will probably meet the following resistances

1. Bold green dual downtrend slope

2. Ichimuko Kumo Cloud

3. Orange resistance zone

Immediate support is the lower blue channel support followed by the pink support belt. A breakdown below 47.5 will probably retest the green support area. Support failure here will resume drop along the lower red channel support.

DJIA Line Chart Diamonds and Half Diamond

2010-06-06T14:15:00.004+08:00

The simple line chart is treated as the poor cousin of the more exotic candlesticks charts and is often overlooked. In character, in manner, in style, in all things, the supreme excellence is simplicity. Using the simple line chart the green and red diamonds can be seen clearly. The orange half diamond is also known by many names such as

1. Reverse Symmetrical Triangle

2. Megaphone

3. Broadening Pattern

Depending on how the market moves next week this orange half diamond may developed into a full diamond if high volatility swings become compressed.

Take note that a head and shoulders pattern with a red diamond top head was confirmed when the red bold trendline which is also the neckline support broke down on 20 May 2010. This coming week will be critical because support failure of the bold blue trendline will probably result in a fall towards the green horizontal support which is also near the measured move projection of the head and shoulders formation.

A technical rebound is expected for the orange half diamond but it will probably be halted at the light blue horizontal resistance line. Until a powerful breakout emerges from this orange half diamond pattern more range trading between the light blue and pink horizontal lines will be the norm.

Z-obee Falling Towards Major Support Confluence Zone

2010-06-02T12:29:00.003+08:00

Breakdown from the green inverted cup and handle target support band has resulted in a drop towards the major support confluence zone comprising of

1. 200 EMA

2. Light blue support region

3. 200 SMA

Trading range is expected within this confluence region.

Genting Betting on 200 SMA Resistance Band

2010-05-30T12:58:00.005+08:00

The bulls lost 3 times in the past as indicated by the red down arrows when they played against the 200 SMA resistance band. Another bull attack is imminent on this bear fortification. Victory here will advance the bull march towards the triple bear resistance defence lines from 1.10 to 1.18 and challenge the 1.20 milestone.

If history is repeated and the 200 SMA band continues to stand then a fall towards 95 will be inevitable. Further weakness will test the 91 to 88 support zone. Major base support is at 85 to 83 and support failure here may see a drop towards 80 and 75 support zone.

DJIA Must Clear and Stay Above 200 Moving Averages To Sustain Rally

2010-05-28T15:52:00.003+08:00

The candlestick reversal pair consisting if a hammer followed by an inverted hammer has been confirmed by a bullish marubozu candlestick bar. This rally can only be sustained if the DJIA breaks above and remain above the 200EMA and 200SMA. High chance of challenging the green resistance of the potential diamond pattern if this rally is maintained.

Stay alert and monitor the critical red support of this potential diamond formation. Support failure here will confirm the bearish diamond top and will probably result in a long term bear market.

Yangzijiang Positive MACD Histogram Divergence

2010-05-27T22:25:00.004+08:00

Potential breakout above the 1.28 to 1.30 immediate resistance zone is imminent according to the positive MACD histogram divergence pattern. Upside surge will probably move within the green channel and head towards the next resistance zone at 1.35 to 1.36 followed by a challenge of the dashed orange mid channel trendline.

Conversely, should there be any shocking news the breakdown below the 1.20 immediate support will retest the lower support of the blue channel. Support failure here will probably result in a downward fall toward the 1.13 to 1.12 support zone.

DJIA Potential Hammer Reversal Candlestick Pattern

2010-05-26T20:13:00.003+08:00

The potential diamond top formation was not confirmed as DJIA closed above the critical red bold support line. A potential hammer reversal candlestick has formed and this may mark the beginning of a new uptrend. A similiar hammer was formed on 5 Feb 2010 as indicated by the light green arrow.

This new potential hammer needs to be confirm with a bullish candlestick bar. It needs to clear both the 200 moving averages to regain its bull status. A breakout above the 200 moving averages will probably challenge the green resistance of the potential diamond pattern.

Metastock Turtle Trader Hybrid Exploration as at 25 May 2010

2010-05-25T22:15:00.006+08:00

As expected all shorts with only 2 longs not on the this list because their traded volume were too low. This is only the first page of a 5 page Metastock exploration result using the famous turtle trading system developed by Richard Dennis. This system is available as part of the Metastock 11 charting software. Free trial available at www.metastock.com/tacttrial

DJIA Flaccid Unable To Clear 200EMA

2010-05-25T19:46:00.003+08:00

High chance of diamond top confirmation if the close is below the red bold support of the potential diamond pattern. A low near the 127.2% Fibonacci level will not shock me personally. A move below this level will be interesting and exciting. More important is the closing. Above or below the red bold support of the potential diamond pattern. Take note of the amplitude of any technical rebound as it will provide clues of market directions for the next few days.

The optimist sees opportunity in every danger; the pessimist sees danger in every opportunity. Happy charting and profitable trading.

Z-obee Confirms Inverted Cup and Handle Formation

2010-05-25T16:05:00.004+08:00

Kudos to those who heeded the warning posted on 21 May 2010. Congratulations to the seasoned and braveheart traders that shorted. Next support is probably 36 followed by measured move target of 34. Immediate short term resistance is 38.

Stocks Near the Bulls and Bears Border

2010-05-25T10:31:00.005+08:00

As the market continues to move down more stocks are testing the 200SMA bulls and bears boundary. Posted above is part of the Metastock exploration result indicating potential bearish stocks sorted by top volume. Potential shorts for those who have CFD trading accounts. Seasoned and braveheart traders may try short term technical rebound trades.

Yangzijiang Early Advance Reverses At Close

2010-05-24T17:31:00.006+08:00

Just like a double edged sword the blue dashed dual trendlines cuts in both directions. Above this dual trendlines it acts as support but once price falls below it the other edge acts as a resistance. Early bulls who did not take profits were slaughtered by this sword as the market closed below the opening price and now sits at the light green immediate support band.

Besides the blue dual trendline resistance acting as a butchering knife other resistances include

1. Ichimoku Kumo

2. 20 SMA

3. Pink resistance zone

4. Dark green resistance belt

Take note that support failure of the light green band will see this Yangzijiang ship heading for rough seas and will challenge the following supports

1. Orange zone

2. Light blue support area

3. 200 EMA

4. $1 mark

Wilmar Key Support and Resistance Levels

2010-05-24T12:35:00.002+08:00

Currently trading in a range between the green immediate resistance band and the lavender immediate support band. Any upward surge will need to breakout above the major pink resistance zone followed by the filling of the huge gap before meeting the light blue gap resistance belt.

This new bear counter must now redeem itself by challenging both the 200SMA and 200EMA. The ability of rejoin the bulls maybe short live if the Ichimoku Kumo bear grip blocks further upward move.

Take note that any weakness will result in a breakdown below the lavender immediate support band and retest the orange support band. Support failure here will probably trigger a bear raid towards the $5 milestone.

Genting Hammer Variant Testing Neckline Channel

2010-05-21T13:38:00.004+08:00

The powerful Ichimuko Kumo bear grip has forced price to fall from the top of the cloud until the bottom of this storm kumo.Once again the neckline channel of the complex head and shoulders pattern is being tested. Immediate resistance at 93 must be overcome to advance to the 95 milestone. Major resistance is the green former support turned resistance zone.

If weakness returns then a drop into the red neckline channel will be inevitable followed by a test of orange support band. Major support is the lavender support base.

Yanlord Falling Towards Major Support

2010-05-21T12:22:00.002+08:00

Doji candlestick has broken the lower red channel immediate support. Orange bull support zone preparing for high probability bear attack. Support failure here will move bull defences to the lower supports of the blue, lavender and green channels.
Stay alert as bears continue their downward march.

DJIA Closed Below Critical 200 Moving Averages

2010-05-21T10:56:00.006+08:00

DJIA closed below both the 200SMA and 200EMA. Since July 2009, bulls have been using these critical moving averages as support guides and this weak closing signals potential further bearish falls. A breakdown below the red dotted trendline will retest the red bold support of the potential diamond top formation.

Take note that any technical rebound may meeting resistances at 200SMA and 200EMA. Any unexpected upward surge will probably be halted at the green resistance of the potential diamond pattern.

Z-obee Potential Inverted Cup and Handle Formation

2010-05-21T08:28:00.003+08:00

Immediate support at 44 is critical trigger that will confirm the bearish cup and handle pattern. A breakdown below this major support will probably result in an initial drop to the 40 support level. Further weakness will fulfill a measured move projection as indicated by the red arrows and will see a test of 34 support. Stay alert and be nimble as market continues its wild volatility swings.

200 Weeks Simple Moving Average 2% Band List

2010-05-19T20:01:00.004+08:00

Metastock exploration for SGX stocks near the 200SMA weekly support and resistance band. A move above this band means more upside is expected for potential long trades. However, a breakdown below this band will probably see more declines and be potential shorts.

Genting Betting on 200 Moving Averages

2010-05-19T12:08:00.004+08:00

Bears are using the red 200SMA resistance as a defensive barrier to keep the Bulls from advancing further up. A breakout above this resistance will probably propel price upwards within the blue channel.

Bulls have established support at the blue 200EMA. A breakdown here will probably see a drop and downward slide within the red channel.

Time is running out for contra and margin players. Stay alert and be nimble as show hand time approaches.

Noble Testing Major Support Zone

2010-05-17T14:02:00.004+08:00

Major support zone is being tested. This support zone consists of

1. 200SMA

2. Red dual support channel

3. Lavender support band

4. 200EMA

Support failure here will result in a retest of the green support band and if further weakness persists a downward slide within the blue channel is expected.

Take note that any rebound from this major support confluence zone will need to clear the upper resistance of the blue channel and strong resistances are imminent at the orange resistance belt and the Ichimoku Kumo Resistance Cloud.

Sinotel Weekly Chart Channel Testing

2010-05-17T11:12:00.004+08:00

Green channel support will be tested and support failure here will see a drop into the orange confluence support box region. A successful rebound from the lower green channel support will meet strong resistance at the 45 milestone. Upward moves will probably be restricted by the upper resistance of the blue, green and red channels.

Stay alert and be nimble as current market condition continues to exert downward pressure.

Genting Ichimoku Kumo Resistance Testing in Progress

2010-05-14T12:50:00.005+08:00

The breakout above the green band has confirmed the double bottom pattern formed at the lavender base support zone. A measured move projection calculation has established the dark orange band as the target price of this double bottom breakout. This can only be achieve if price can overcome the bear grip of the Ichimoku Kumo Resistance followed by the dual resistance lines of the red channel and the dark blue resistance zone.

Take note that if the major support formed by the green band and the 100EMA fails a retest of the beige, light blue and lavender support is imminent.

Noble Testing Triple Resistance

2010-05-13T11:14:00.005+08:00

Blue 200SMA and lower green channel support rebound currently facing triple resistances

1. Upper red channel resistance

2. Upper green channel resistance

3. Lower boundary of Ichimoku Kumo

A successful breakout above these resistances will probably meet further resistances at the upper boundary of the Ichimoku Kumo followed by the 3.30 gap resistance.

Take note that failure to clear the current triple resistances may result in a pullback towards the 200SMA and the lower green channel support. If weakness persists then there is a high chance that price will trade within the downward red channel.

Metastock Turtle Trader Hybrid Exploration as at 12 May 2010

2010-05-12T22:57:00.002+08:00

Turtle Trader (Hybrid) System is one of the 5 NEW Name Brand Systems that is part of Metastock 11 End of Day Version. Turtle Trader (Hybrid) System is based on the well-known and widely published Turtle System, this system generates buy signals when the price moves above the highest high of the last 20 days. Short signals are generated when the price moves below the lowest low of the last 20 days. Positions are closed when prices reach the extremes of the previous 10 days.

This system could easily sell as a separate MetaStock Plug-In but it is now free as part of MetaStock 11. Free trial of Metastock 11 is now available at www.metastock.com/tacttrial.

Yanlord Potential Inverted Cup and Handle Formation

2010-05-12T14:42:00.004+08:00

The giant dome structure has transformed into a potential giant inverted cup and handle formation. A breakdown below the blue support zone confirms this bearish pattern and will probably result in a fall towards the orange dotted support line. Further weakness may see a retest of the green dotted support band.

Take note that there may be formation of multiple handles if bullish buying support defends the blue major support zone of this potential inverted cup and handle pattern.

Genting Betting on Major Resistance Zone

2010-05-10T10:03:00.004+08:00

22 Feb 2010
1st attempt to clear green major resistance zone

16 Mar 2010 to 22 Mar 2010
2nd attempt with multiple daily bars within the green band

30 Apr 2010
3rd attempt with shooting star candlestick warning of bearish pullback and the additional resistances from 100EMA and the upper red channel resistance

10 May 2010
Testing of triple resistances formed by green resistance band, upper red channel boundary and 100EMA in progress. A strong breakout above this major green resistance barrier will challenge the pink resistance band. If strong follow up buying continues the dark blue resistance barrier may be tested.

However if the bears wins the bet expect a retracement to the following probable supports

1. Pale orange belt

2. Lower red channel support

3. Light blue band

4. Critical lavender base support

DJIA Potential Diamond Top or Diamond Continuation Pattern ?

2010-05-09T21:40:00.003+08:00

Expect more wild wide swings between the green and red lines of the potential diamond formation. A breakout above the green resistance line must clear the top apex of the diamond to confirm that it is a continuation pattern and this will see more upward climb of the DJIA.

However if the DJIA is unable to propel above the red 100SMA resistance and the orange dotted horizontal resistance it will probably retest the green 200SMA support followed by the light blue dotted horizontal support and the red support line of the diamond formation. Support failure here will confirm the diamond top and more downward pressure will be imminent.

Yangzijiang Testing Resistance Zone

2010-05-06T11:01:00.006+08:00

Rebound from gap support and lower blue channel support facing resistance at pink zone. A strong sustained breakout is needed to clear this resistance band to challenge the following probable resistances

1. Dark green belt

2. Upper resistance of blue channel

3. Lavender band

4. Milestone 1.50

5. Peak marker 1.57

However, if bears regain control a retest of the following probable support is imminent

1. Light blue gird

2. Light green gap support zone

3. Lower blue channel support

4. Orange band

5. Ichimoku Kumo cloud support

Stay alert and be nimble as the market continues to be spooked by the Euro Debt Crisis.

DJIA Weekly Chart Bearish Engulfing Candlestick Formation At Fibonacci 61.8% Retracement

2010-05-05T21:22:00.004+08:00

As predicted in my posting on 15 April 2010, the DJIA met resistance at Fibonacci 61.8% Retracement level and a bearish engulfing candlestick pattern was also formed at this confluence region. The light green horizontal support will be tested next if further weakness continues. Support failure here will test the dark blue trendline support. Bears will be victorious if this blue trendline breaks and challenge the next Fibonacci Retracement support at 50% level.

Any unexpected rebound from the current position must take out the 61.8% Fibonacci Retracement followed by the horizontal inverted head and shoulders measured move projection target as indicated by the red dotted horizontal line. Strong resistance is expected inside the orange rectangle confluence zone.

Sinotel Weekly Chart Cup and Handle Pattern

2010-05-04T11:26:00.003+08:00

Since IPO this counter has created a giant cup and handle formation. Price has been trading within the dark blue channel which is handle of the cup. The recent breakdown below the upper red channel support will probably see a retest of the lower support of the blue channel if the 45 to 43 support zone fails. Next support will be the 40 milestone followed by the lower boundary of the red channel. Further weakness will probably test the 36 to 34 support area.

However, any successful rebound from the current support zone or the lower handle support may meet resistance at the 50 mark followed by a challenge of the 55 to 56.5 resistance band.

Genting Potential Shooting Star Battles Triple Resistance

2010-04-30T13:37:00.006+08:00

Rebound from lavender support belt is now battling triple resistance formed by

1. Upper red channel resistance boundary

2. 100 EMA

3. Green resistance band

Strong buying in the afternoon must be able to absorb the profit taking for a successful breakout above this triple resistance to challenge the pink resistance zone.

If the Bears take control expect a pullback to test the following probable supports

1. Orange support belt

2. Lower red channel support boundary

3. Light blue support zone

4. Major lavender support base

Stay alert and be nimble.

Broadway Turtle Trader Hybrid Long Signal On Track

2010-04-29T21:10:00.007+08:00

Kudos to those who traded based on the Turtle Trader Hybrid Long exploration scan by Metastock 11 EOD as posted last night (see previous posting). A strong upthrust since the rebound from the lower support channel has rapidly reached the mid channel resistance. Further buying interest is required to continue climb towards the upper channel resistance. Any weakness may see initial support at 1.20 followed by the 1.16 to 1.14 support band.

Obtain more info on Metastock at www.metastock.com/tact

Long or Short based on Metastock Turtle Trader Hybrid Exploration

2010-04-28T20:44:00.005+08:00

Yangzijiang Triple Support Rebound

2010-04-28T10:02:00.004+08:00

Rebound from triple support formed by

1. 20SMA

2. Dual support of upper blue channel boundary

3. 38.2% Fibonacci Retracement

Expect resistance at the light blue zone followed by a challenge of 1.57 peak if buying interest continues. Any weakness before reaching the light blue zone will retest the triple supoort again. Support failure here will retest the following probable support levels

1. 1.30

2. 50% Fibonacci Retracement

3. Green gap support zone

4. Blue channel dual lower support boundary

5. 61.8% Fibonacci Retracement

Stay alert and be nimble as market continues its high volatility swings.

Metastock Generated 200 Weeks Simple Moving Average 2% Band List

2010-04-25T14:38:00.005+08:00

The 200 SMA is used to demarcate bull zone from bear territory. Statistics have indicated that long positions above this line favours the bulls and short positions below this line provide better odds for the bears.

This moving average should be a charting setup in all time frames. Use it in weekly charts, daily charts, and intraday 5 min, 10 min, 15 min, 30 min and 60 min charts.

The 200 SMA is the most important moving average to have on a stock chart. You will be astonished at the frequency a stock will reverse in this region.

Utilize this as an additional filter to find potential long setups that are above this 200SMA line and potential short setups that are below it.

The list of SGX Counters Hovering Near 200 SMA was an exploration result written in Metastock Exploration Language. Stay alert and be nimble if the counter you are trading appears on the list posted above. Expect high volatile swings as the stock struggles to decide whether to remain as a bull or tranform into a bear and vice versa.

Genting Betting on Critical Support

2010-04-23T14:01:00.004+08:00

Bulls and Bears betting on light green critical support band. A victorious bulls campaign will retest the following resistances:-

1. Upper resistance line of the blue channel

2. Upper resistance line of the red channel

3. 200EMA resistance

4. Ichimoku Kumo resistance cloud

However, if the Bears are triumphant a breakdown below the light green support band will challenge the following supports:-

1. Lower support boundary of the blue channel

2. Lower red channel support line

3. Green downtrend line

Stay alert and be nimble as the countdown timer ticks.

Baker Tech 30 mins Support and Resistance

2010-04-21T16:03:00.004+08:00

Short term 30 mins chart support and resistance trading bands where the bulls and bears battle continues. Breakout above green band will most probably meet red resistance zone. Pullback will retest support at the orange support belt. Critical support is the light blue support zone near the Ichimoku Kumo support cloud. Support failure here will retest the lavender support band next and a breakdown of this band confirms the short term double top formation at the green zone. This weakness may trigger a drop to retest the pink gap support zone and a fall below the Ichimoku Kumo will revert its support role into a resistance storm cloud.

Yangzijiang Testing Channel Resistance on Weekly Chart

2010-04-20T11:42:00.003+08:00

Testing of dual resistance of blue channel in progress. A move into the upper channel region will meet the 50% Fibonacci Retracement resistance followed by the green resistance belt. If further buying interest continues a retest of 61.8% Fibonacci Retracement resistance is imminent.

However if the upper channel resistance cannot be overcome then expect a pullback to 1.40 and the lower blue channel support if there is further weakness.

DJIA Enters Confluence Region

2010-04-15T20:11:00.005+08:00

DJIA has crossed the 11000 milestone and has just enter the confluence region indicated by the orange box. This orange box is similar to the lavender box which enclosed the congestion period around late June 2008 to late September 2008. Within this orange box are 2 probable resistances :-

1. The measured move projection of the inverted head and shoulder breakout as shown by the red dotted line.

2. The 61.8% Fibonacci Retracement taken from the Oct 2007 all time high to the low on March 2009.

Stay alert as probable reversal may be triggered within this confluence zone.

Cosco Testing Ichimoku Kumo Support on 30 mins chart

2010-04-15T17:15:00.003+08:00

5 April 2010
Broke out above 1.27 and began a fantastic run up to 1.85

8 April 2010
Pulled back to 50SMA and 50EMA supports.

9 April 2010
Gapped up on opening from previous day close. Almost touched Ichimoku Kumo support and an amazing rebound propelled price towards 1.85

15 April 2010
Early morning trades established 1.85 peak. Pierced 50SMA and Ichimoku Kumo support but managed to close above both the 50SMA, 50EMA and the storm clouds.

A breach of these 3 supports and the gap support at 1.73 will see further weakness. A breakdown below the red channel will retest the next support zone at 1.67 to 1.65

However a successful rebound from the Ichimoku Kumo support will meet resistance at the upper trendline of the red channel. Any further upthrust must challenge the 1.85 peak convincingly.

Noble Doji Testing Triple Support

2010-04-13T16:52:00.005+08:00

Doji testing triple support comprising of :

1. Ichimoku Kumo Cloud

2. Lavender support band

3. Green channel support

A successful rebound here will propel price back into the red channel and retest 20SMA resistance followed by blue resistance zone. Further upthrust may result in a potential triple top.

However, if the doji rebound fails then an imminent drop to 100EMA is inevitable. Strong support at the orange support band must prevail to arrest further decline. Support failure near the 3.00 milestone will probably plummet price to retest the green and pink support regions.

Raffles Education Dragonfly Ready to Fly ?

2010-04-12T13:30:00.007+08:00

Dragonfly resting after rebound from green support band and blue channel support. Immediate support is the dotted lower red channel boundary followed by the blue support belt. If buying interest continues there is a high probability of testing the median line of the blue channel. A strong breakout above this median resistance line may propel price towards the upper boundary of the blue channel. Use the coloured bands as potential support and resistance zones.

Yanlord Testing Double Resistance Zone

2010-04-07T11:42:00.005+08:00

Testing of double resistance formations

1. Dual upper resistance boundaries of green channel

2. Blue resistance band

Breakout above these 2 resistances will test the dual central resistance band of the red channel and challenge the pink resistance zone. If buying continues above this pink zone expect probable resistances at the colour bands indicated on the chart.

However, if the Big Bulls cannot clear the blue immediate resistance band a pullback towards the light blue support band is imminent.

Noble Testing Gap Resistance Zone

2010-04-06T12:14:00.004+08:00

Kudos to those who bought at the confluence support zone. The rebound from the 100EMA support is now being tested at the light blue gap resistance band. A breakout above the gap resistance band will meet more resistance within the red dual trendline region. A successful upthrust here will probably see a retest of the previous peak formed on 17 March 2010.

However, failure to clear the light blue gap resistance will result in a pullback to the 3.15 to 3.14 immediate support belt. Further weakness will retest the 3.08 to 3.07 gap support band and retest the major confluence support zone again.

Noble Testing Major Support Confluence Zone

2010-04-01T10:57:00.005+08:00

Falling lower and lower since 17 March 2010 peak. Gap down and more declines. Now testing critical support confluence zone consisting of the following supports :-

1. 100 EMA

2. Ichimoku Kumo Cloud

3. Lower boundary support of green channel

4. Orange support band

If this support confluence region is unable to halt further price decline the next probable supports are as follows :-

1. Green support belt

2. 145 EMA

3. Pink support zone

4. Trough at 2.64 which is the breakpoint reference for the double top pattern indicated by the grey oval shaded area on the chart. Support failure here confirms the double top formation.

However, if the testing of the current confluence support zone results in a rebound expect major resistance at the light blue gap region.

Genting Testing Support Band

2010-03-31T13:33:00.003+08:00

Testing of light blue immediate support band in progress. Support failure here will see a retest of the lavender support zone. Immediate resistance is the dual resistance band formed by the blue channel. Next resistance is orange resistance belt followed by the red extension line of the neckline of the complex head and shoulders pattern. Any upward movement will most probably be halted at the green resistance zone.

If Big Bears continue to be in control in the afternoon trading session the light blue support may breakdown. Stay alert and be nimble.

Z-obee Trailing Profit Protection

2010-03-30T12:11:00.007+08:00

Kudos to those who bought at the breakouts of the red trendline or the green horizontal resistance line. As price continues to move higher and higher the risk of a retracement is imminent. A simple profit protection such as a 1% percent trailing stop from the daily low will provide a safety net to ensure that accumulated profit is not eroded. As long as the price does not go below the blue trailing stop let your profit ride on this zooming rocket.

Long or Short based on Metastock Exploration 3% Crossover

2010-03-28T22:23:00.001+08:00

Healthway Potential Ascending Triangle

2010-03-26T13:30:00.003+08:00

Hovering near slope support of potential ascending triangle. A rebound here will retest the horizontal resistance of the triangle. Immediate support is the green support zone. Support confluence is the intersection of the lower dual band boundary of light blue channel and the dual band slope of the triangle. Support failure here will probably find new support at the light blue area and attempt to create a new slope support there.

Yanlord Trapped Inside Ichimoku Kumo Clouds

2010-03-24T14:06:00.003+08:00

Fifth attempt to clear and move above the red channel halted again in morning trading session. Immediate resistance is the red channel upper boundary. A breakout above the Ichimoku kumo cloud region will meet the grey resistance belt.The next resistance is the upper dual resistance bands of the green channel followed by the pink resistance zone. Expect more probable resistances at the coloured bands above this pink zone.

Immediate support is formed by the light blue zone. Any attempt to breakdown below the Ichimoku kumo cloud must challenge the brown support region. Support failure here will plummet price into the pink channel and retest 1.70 trough formed on 19 Feb 2010.

Z-Obee Third Attempt to Breakout Above Ascending Triangle

2010-03-23T11:52:00.005+08:00

Once again for the third time halted by the green resistance zone. Immediate support is the orange support belt. Breakout above the immediate green resistance zone will probably challenge the dual resistance band of the green channel. Clearing the horizontal resistance of the red ascending triangle will probably find new support around this horizontal line.

Any pullback below the immediate orange support belt will meet strong support at the intersections of the lavender support area, the upper dual band of the blue channel and the lower dual band support of the green channel.

A breakdown below the red slope support of the red ascending triangle will negate this triangle formation. However, technically there is a possibility of a larger triangle pattern if a support base forms at the light blue support zone or the Ichimoku kumo cloud region.

DJIA Minor Rising Wedge Inside Major Rising Wedge

2010-03-21T21:05:00.005+08:00

High chance of a double top pattern forming if the blue minor wedge support is broken. The spinning top candlestick formed on Friday indicates indecision. Stay alert and be nimble as Bulls and Bears wrestle to control the market. If the Bears achieve power expect a breakdown of the minor blue rising wedge and a retest of the red major rising wedge support. If the Bulls continue charging upwards the upper resistance of the blue wedge will most probably experience a breakout and challenge the resistance formed by the giant red rising wedge.

Long or Short List

2010-03-19T02:44:00.002+08:00

Genting Testing Major Multiple Resistance Zone

2010-03-17T14:59:00.006+08:00

Since 4th March 2010 green channel support rebound price has been rising and is now testing a major multiple resistance zone comprising of the following barriers :-

1. Red neckline resistance of the complex head and shoulders pattern

2. Dual upper resistance band of the green channel

3. Blue 200 EMA resistance

4. Brown 200 SMA resistance

5. Green resistance belt

A major breakout here will retest the pink resistance region followed by probable key resistances at 1.10, 1.15, 1.20, 1.25 and finally a challenge of peak resistance band at 1.30 to 1.32

However if the breakout of the major multiple resistance zone fails expect a pullback towards the lower dual support boundaries of the green channel.

SMB Rebounds from Ichimoku Kumo Cloud Support

2010-03-15T19:03:00.006+08:00

The two doji candlestick pair halted price decline near the triple intersections of red, green and blue channel supports. The stochastics has crossover and is just beginning to move out of the oversold region. RSI and MACD are also exhibiting favourable signals. The upward price move will probably test the resistance of blue channel around 34.5 and if bullish buying interest continues a surge into the upper dual resistance band of the green channel will probably retest 36 peak formed on 22nd Feb 2010.

Immediate support is the Ichimoku kumo cloud followed by the red channel support. The dual support band of the green channel and the blue channel support are the next support zone. Support failure at 30 will probably retest the 28 to 27.5 gap support .

Yanlord Hovering In the Clouds

2010-03-15T10:23:00.003+08:00

Clouds hovering as Bulls and Bears await a major push to determine the next swing direction. A breakdown of immediate resistance at 1.94 will probably retest the red channel support followed by the light blue support zone, Further weakness will plummet price to the lower dual support of the green channel and lower support of the dark blue channel. A breakdown here may see support at 1.75 to 1.70 region.

Conversely, an upward move above the Ichimoku Kumo Clouds will need to clear the upper dual resistance of the green channel followed by the pink resistance area. A successful breakout will see challenges at the colored bands as upward surge continues.

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2010-03-11T18:00:00.004+08:00

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Z-Obee Potential Ascending Triangle Sloping Support Rebound

2010-03-10T17:18:00.004+08:00

Rebound from sloping support of red potential ascending triangle. Advance was halted by the lavender resistance zone and the upper dual resistance band of the blue channel. Further climb must surmount both these 2 barriers and punch through both the orange and green territories. A breakout above the red horizontal resistance confirms the ascending triangle pattern.

Immediate support zone 36 to 35 and next support is the light blue support area. A retest of the pink support region will most probably negate the ascending triangle formation although technically there is a possibility of an even larger triangle. A breakdown below the pink support will confirm the double top formed by the peaks on 25th Jan 2010 and 1st Mar 2010.

Yanlord Meets Ichimoku Kumo Storm Clouds

2010-03-09T20:11:00.003+08:00

A breakout above the Ichimoku Kumo storm clouds will most probably propel price towards the pink resistance zone. If bull power continues then expect resistances at the colored zones. However if lightning strikes a decline back down to the light blue support zone will prevail. Further weakness will retest lower boundary of blue channel.

Z-Obee Doji Testing Sloping Support of Potential Ascending Triangle

2010-03-08T14:03:00.005+08:00

Doji testing red ascending triangle support and light blue support zone. A successful rebound to confirm the ascending triangle pattern will need to clear the following resistances

1. Immediate resistance formed by the intersection of the upper boundary of the blue channel and the lower boundary of the green channel

2. Resistance zone at 35.5 to 36

3. Lavender resistance area

4. Orange resistance region

5. Green resistance territory

6. Horizontal resistance of red potential ascending triangle . A breakout above this resistance confirms the triangle formation and will probably see an attempt to climb higher.

Conversely, if the flushing of the weak contra traders is not support by strong buying interest expect retests of the following supports

1. Immediate sloping triangle support

2. Light blue support zone

3. Pink support belt

4. Ichomoku kumo support cloud

5. Lower boundary of blue channel

Genting Pitchfork Challenge

2010-03-08T03:59:00.003+08:00

With the bullish closing on Friday there will be challenges to the following resistances

1. Median line of Greeen Pitchfork

2. The dual 200 moving averages of both the 200EMA AND 200SMA

3. Red neckline of the compleax head and shoulders chart pattern

4. The upper boundary of the green pitchfork

Immediate support is 88.5 to 88 zone followed by 83.5 and the lower support of the green pitchfork. Since 18th Feb 2010 price has been trading in the lower portion of the green pitchfork. Any strong breakout in either direction will ultimately need to challenge the pitchfork formation and move out of its zone of influence.

Genting Testing 85 Support on 30 mins chart

2010-03-04T13:47:00.004+08:00

Another support breaks as Genting continues to plummet lower. The previous support at 86.5 has been demolished and a new support at 85 is being tested. Immediate resistance now is 86.5 and any move up above 86.5 will need to clear the light blue dual trendline resistance followed by the Ichimoku Kumo Storm Clouds.

A breakdown below 85 will challenge the red triple trendline support as shown on the 30 min chart. Stay alert and be nimble if you want to bet on Bear Casino Island Resort.

Z-Obee Double Doji Testing Support Zone

2010-03-03T14:34:00.003+08:00

Market waiting for Big Bulls and Big Bears to take action. Doji indicates Bulls and Bears in equilibrium. Watch the breakout direction and probable support and resistance zones.

For upward bull breakout expect the following high probability bear resistances at

1. Immediate resistance at 37.5

2. Light blue resistance zone

3. Red horizontal resistance of ascending triangle

4. Upper green channel resistance boundary

For a bearish breakdown the bulls will stage high probability support at

1. Immediate support of the upper boundary of the dark blue channel

2. Green support zone

3. Lower boundary of green support channel

4. Sloping trendline support of red ascending triangle

5. Pink support zone

6. Ichimoku kumo cloud support

7. Lower dark blue channel support boundary

Stay alert for a big bear or big bull breakout from this double doji formation.

Genting 88 Support Turned to Resistance on 30 min chart

2010-03-02T12:00:00.002+08:00

Another support at 88 cents has been taken out and has transformed itself into a resistance line. More bears invading this casino island resort. Any breakout above 88 will most probably be halted by the green dual resistance trendlines and the dark storm clouds of the Ichimoku Kumo. Immediate support 86.5 with a high chance of testing the pink dual trendlines support. Further weakness will plummet price to the blue dual trendlines support.

Yanlord Inverted Head and Shoulders Confirmation

2010-03-01T16:17:00.004+08:00

Breakout above the neckline resistance zone 1.82 to 1.80 confirmed the reverse head and shoulders pattern. Strong buying has powered the rapid flight of price towards the target price zone of 1.95 to 2.00 and expect profit taking at this region.

Pullback towards 1.91 to 1.89 support zone expected if buying interest wanes and further weakness may see a retest of 1.87 to 1.85 support zone. Major support is the former neckline resistance turned support zone as seen on the hourly chart.

Z-Obee Potential Double Top or Potential Ascending Triangle

2010-03-01T10:49:00.003+08:00

Tested and pullback from the high of the previous peak thus setting a potential double top chart pattern in the process. At the same tine on closer examination there is also a potential ascending triangle as shown in red. This ascending triangle formation will be invalid if price breaks down below the sloping support of the triangle. A breakout above the red horizontal resistance will confirm the ascending triangle.

The potential double top formation will be confirm only if there is a breakdown below the pink support zone and will be invalid if price manages to clear the red horizontal resistance line.

List of SGX Counters Hovering Near 200 SMA as at 26th Feb 2010

2010-03-01T08:34:00.002+08:00

The 200 SMA is used to demarcate bull zone from bear territory. Statistics have indicated that long positions above this line favours the bulls and short positions below this line provide better odds for the bears.

You should add this moving averages to all of your charts in all time frames. Yes. weekly charts, daily charts, and intraday (5 min,30 min, 60 min) charts.

The 200 SMA is the most important moving average to have on a stock chart. You will be astonished at the frequency a stock will reverse in this region.

When writing scans for stocks, you can use this as an additional filter to find potential long setups that are above this line and potential short setups that are below this line.

The list of SGX Counters Hovering Near 200 SMA was an exploration result written in Metastock Formula Language. Stay alert and be nimble if the counter you are trading appears on the list posted above. Expect high volatile swings as the stock struggles to decide whether to remain as a bull or tranform into a bear and vice versa.

Z-Obee Testing Symmetrical Triangle Resistance

2010-02-26T14:26:00.003+08:00

Major upper red channel resistance being tested. This is the resistance line for the symmetrical triangle formation. Breakout above this immediate resistance will meet next resistance at 37.5 followed by the light blue resistance zone. However, a pullback below the current green support zone will retest the lower blue channel support which is also the symmetrical triangle support. Support failure here will force price downwards towards the pink support zone and challenge the lower red channel support.

Yangzijiang Potential Complex Head and Shoulders Formation

2010-02-26T13:41:00.003+08:00

A potential right shoulder of a complex head and shoulders chart pattern is being formed. Breakdown below the red neckline support confirms this formation. Neckline support failure will see retest of 90 cent support zone. This potential complex head and shoulders pattern will be invalid if price swings above 1.20 and if it continues to move up there is a high chance of a triple top formation.

Capitaland Potential Diamond Formation

2010-02-25T15:41:00.005+08:00

Potential diamond chart pattern has formed on daily chart as at 3.38 pm based on live data updates. A continuation diamond pattern is considered a bearish signal, indicating that the current downtrend may continue. Stay alert and be nimble as a breakdown below the diamond trough may see a drop towards 3.30 support region.

Genting Due Dates for High Volume Trades Approaches

2010-02-25T03:31:00.004+08:00

The due dates for the high volume traded on 18th Feb and 19th Feb 2010 approaches and the real test of support will be known soon. If the buying interest is real there will not be margin calls and force selling. The median line of the red pitchfork has been checking the price movement and any upward breakout here will see resistance at the upper boundary of this pitchfork. Conversely, if force selling should happen a retest of the 90 cent doji low support is expected followed by a challenge of the lower boundary of the red pitchfork. Take note of probable supports as indicated by the blue dotted lines. Be nimble and stay alert the moment of truth cometh.

CapMallsAsia Doji Moves Out of Down Channel

2010-02-23T21:56:00.005+08:00

From the volume distribution chart the Big Boys sold in late afternoon trading. The doji candlestick signals an indecisive market sentiment and warns of a probable stall in upward move from the green channel. Immediate resistance expected at 2.30 followed by 23.6% Fibonacci retracement level. Observe the price movement as it approaches each Fibonacci retracement level as they are high probable resistance and support levels.

Being a new stock with limited trading history the use of Fibonacci projection helps predict probable support levels below the 1.19 immediate support. Breakdown from this critical support may see a test of the projected Fibonacci levels plotted on the chart. Stay alert and be nimble in case important US economic data rocks or shocks the market.