23 May 2010
Technical Rebound?
STI, Hang Seng and Dow Jones has shown sign of recovering during the last intra-day trading. Does this means that there is a technical rebound? Who knows? but i would expect it to rebound looking from the TA point of view.
STI is showing a potential bullish divergence and 2680 is the major classical support. If technical rebound is going to happen, the 1st resistance STI is going to meet is at around 2775; a lot more resistance are waiting behind. Down trend / Sideway is going to continue if STI can't break previous high. Currently, STI is at a crucial point - once STI broke down 2680, more downside is going to happen.
Is it time to buy?
If you intend to buy now, be prepared. The risk is higher if you buy now since we are in downtrend now and the risk and reward might not be good.
An option for me is to trade on a very short period, fast in and out.
I might risk a smaller position and hook on counters that establish potential bullish signal.
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