On 10-October, I mentioned that DOW is a side way market. Ranging from 15700 to 14760 / 14650. 18 to 20-October, I said to watch out for Shanghai and Hang Seng index which were approaching its resistant level of 2270 and 23650 respectively. I also mentioned that STI shouldn't have a problem to cross 3200. But 3230 will be a resistant to STI. My warning and analysis turned out to be correct.
See how powerful is the support and resistant. When I was working, my colleagues used to ask me "can I buy this stock?" Instead of telling them the answer, I asked them back "what is the S/R lines for this counter?" A lot of retailer buy that particular stock because they heard someone telling them this is a good stock and that it can go up to certain price range. And a lot time retailer buy at near its resistant level. This is very dangerous. Do not be a goal keeper, catching stocks/counters that the professional traders and investors release. I mentioned this many times.
Knowing the S/R lines is the first basic thing that a trader needs to know before he buy any particular stock/counter. And it is also the first basic TA that he needs to learn before he goes into trend, triangle, hammer......and so on.
The pattern that DOW moved up plus its trading volume is not in favour. Its needs a retracement with consolidation. Hang Seng, is going to test it 23650 again. When? Let's look at the other index/market. Shanghai or I so called China market is waiting for its Third Plenary Session which will be held on 9 to 12 of November. Economists and analysts have high hope on this. Hopefully Chinese Communist Party and the People's Central Bank won't upset anyone, otherwise the market may...........so watch out on how its market move on this coming week. If nothing goes wrong and things will smooth, STI should break 3230.
Back to US. US Fed will be having another meeting in somewhere mid of December. This meeting may be the last meeting for Ben Bernanke. Watch out for this as well. Will there be any announcement by him regarding tapering since he was the one who initiated QE.
Happy Trading.
See how powerful is the support and resistant. When I was working, my colleagues used to ask me "can I buy this stock?" Instead of telling them the answer, I asked them back "what is the S/R lines for this counter?" A lot of retailer buy that particular stock because they heard someone telling them this is a good stock and that it can go up to certain price range. And a lot time retailer buy at near its resistant level. This is very dangerous. Do not be a goal keeper, catching stocks/counters that the professional traders and investors release. I mentioned this many times.
Knowing the S/R lines is the first basic thing that a trader needs to know before he buy any particular stock/counter. And it is also the first basic TA that he needs to learn before he goes into trend, triangle, hammer......and so on.
The pattern that DOW moved up plus its trading volume is not in favour. Its needs a retracement with consolidation. Hang Seng, is going to test it 23650 again. When? Let's look at the other index/market. Shanghai or I so called China market is waiting for its Third Plenary Session which will be held on 9 to 12 of November. Economists and analysts have high hope on this. Hopefully Chinese Communist Party and the People's Central Bank won't upset anyone, otherwise the market may...........so watch out on how its market move on this coming week. If nothing goes wrong and things will smooth, STI should break 3230.
Back to US. US Fed will be having another meeting in somewhere mid of December. This meeting may be the last meeting for Ben Bernanke. Watch out for this as well. Will there be any announcement by him regarding tapering since he was the one who initiated QE.
Happy Trading.
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