By KP Yang on June 10, 2009
I saw Doji formation on Dow Jones last week, plus the 200d MA resistance, that was the first bearish signal for me that market correction is coming. 4 -5 trading days has passed and we are still seeing the Doji like formation almost everyday.
This shows that the market is still very undecisive now. It might be a tug of war between the bull and the bear this week.
Falling Volume on Dow Jones is Concern
I am seeing the volume falling on Dow Jones, that’s the key important bearish sign on top of the stagnant price movement.
The best strategy to apply now is hold and watch. We need to see a better signal to confirm the market direction first before taking action!
Dow Jones Industrial Average
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
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Posted in US Stock Market | Tagged Dow Jones, Dow Jones Industrial Average, US Market, US Stocks
By KP Yang on June 10, 2009
I saw that Singapore STI broke the upward trendline 2 days ago. However, STI was still trading in the pennant range now. It is a tug of war between bull and bear now. There is a likelihood to break up or down at the pennant.
Higher Possibility of Bearish Formation
The current bull market seems to still remain intact as the second upward trendline is still valid at this point (Red line in the following chart). I have also noticed that the volume is dropping as well. There is no way to propell the market if participation is low.
I am also seeing a bearish cross over on MacD indicator as well. RSI and Stochastic are in the oversold region for quite a long while.
Base on this information, I am seeing that STI is going bearish at least for short term as a correction. The support will be 2,274 and resistance at 2,424 level.
Singapore Straits Time Index
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
Posted in SG Stock Market | Tagged Singapore Market, STI, Stock Market Trends
By KP Yang on June 8, 2009
While we saw that Singapore STI broke the upward trendline which look like a bearish signal to us. Hong Kong Hang Seng Index (HSI) is still trading in the upward bullish channel.
We are currently seeing a pennant like continuation pattern forming at the Hong Kong Hang Seng Index. Breaking upward the pennant show a continuation of the uptrend while a breakdown of the pennant plus the break of the upward trendline can be a signal of bearish correction.
Remember to keep a look out on Hong Kong HSI in the next 2 days for confirmation signal if you are trading on Hong Kong stock exchange.
Hong Kong Hang Seng Index Stock Market Trends
Posted in HK Stock Market | Tagged Hang Seng index, HK Stock Market, Hong Kong, HSI
By KP Yang on June 8, 2009
My last post on 31 May showed that Singapore Straits Time Index (STI) enjoyed a bull run so far. STI upward bull run was cooled off last week with a pennant like consolidation pattern. Finally, STI dived 2.61% downward and the upward trendline was broken today.
Is It The END for STI Bull Run?
It was a great 3 months bull run on many stock markets since March. That was the same for STI and many people was making money and you can see them smiling day in and day out. The market reacted positively due to the HOPE of a ecnomic recovery.
However, there are some signs that the economic worse case is easing, which may signal a recovery. Therefore, the market was pushed higher and higher. It has come to a point now that investors and traders are questioning whether the recovery is sustainable. This is still too early to confirm now.
Using technical analysis, we are seeing Dow Jones is now hitting with a stubborn and strong resistance at 200d MA. Likely there will be some pull back on Dow Jones.
STI also dived 2.61% today, which can signal the end of the rewarding bull run. I will be monitoring closely tomorrow and day after to look for a confirmation signal that the trendline is broken. For example, the 20d MA is now the support and that is also very near to the classical support at 2,290. One this support is broken and confirmed, the market can retrace downward to the 38% fibonacci support or 50d MA support line.
Singapore Straits Time Index Upward Trendline Broken
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
Posted in SG Stock Market | Tagged SG Stock Market, Singapore, Singapore Market, STI, Straits Time Index
By KP Yang on June 5, 2009
I am sure many of you have heard about Japanese candlestick. I am now learning to pick up more knowledge in this area. Instead of reading a book, I choose another learning method, I am watching a video listening to the expert explaining about candlestick on a video.
Learning Candlestick through Expert’s Video
I have bought some books before to read about candlestick, but every time I read, I fell into sleep half way. It is not that easy to understand and grasp the candlestick concept. This is the main reason why I am changing to another learning method by watching a video.
I am more a visual person, by watching the candlestick learning video with my own eyes, I can comprehend the candlestick concept better and make it easier to remember all the candlestick pattern.
Anyway, this is just the beginning of my learning journey and I will update more about what I learn on this blog.
Advanced Candlestick Trading Application
Posted in General | Tagged Candlestick
By KP Yang on June 3, 2009
I was looking at Dow Jones hitting the 200d moving average (MA) resistance. Indeed, the index was stopped right at the 200d MA resistance and a doji was formed.
Doji Formation on Dow Jones
A doji suggested that a short term correction is underway, we should see some fall on the US stock market in the next 2 days. In addition, Fed chief Bernanke is now suggesting the US government to start working towards reducing deficit, will this news become the stopper to end the bull run?
It is hard to say at this junction, but let’s monitor closely to how the market reacts in the next 2 days, there is a likelihood to end the bull run if the support is broken.
Doji Formation on Dow Jones
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
Posted in US Stock Market | Tagged Doji, Dow Jones, Dow Jones Industrial Average, US Stock Market
By KP Yang on June 3, 2009
Apple has scheduled to make some big announcement next week. Maybe some update on the next generation iPhone, or maybe some update to the possible netbook, or its Mac OS Snow Leopard.
At this junction, let’s look at the analysis of Apple now!
Watch Analysis of Apple Stock
Stock Analysis of Apple
Posted in US Stock Market | Tagged Apple, Stock Analysis
By KP Yang on June 2, 2009
I posted yesterday Dow Jones will be resisted by the 200d MA. Indeed, you can see that the high of Dow Jones hit on the 200d MA and closed lower. Again, this demonstrate the power of technical analysis as it helped us to know where is the possible ceiling to take profit.
Dow Jones hit 200d MA Resistance
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
Posted in US Stock Market | Tagged Dow Jones, Dow Jones Industrial Average, US Stock Market
