Genting Betting on 200 SMA Resistance Band

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

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

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

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

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

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

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.