DJI wave formation

Where is the DJI heading?

To recap the Wave A formation when the index plunged on Aug 2011. Such movement signals a possibility a trend reversal. However, the Wave Formation needs a long period of signal to prove its usefulness. As a reference, Fibonacci Retracement (dotted blue line) is used to guide the macro-movement of the index.  During a main wave movement (blue and red continuous lines), those lines are another measurement to gauge the probability of the formation. Now, you can see that DJI is trading above the blue line (11800). For a proper wave B formation, this is the resistance level. But trading above might violate the wave B line, it probability looks like a Wave 4 (instead of Wave A) or Wave 5 (instead of Wave B).

Ignoring the wave theory, the TA is definitely bullish when it is above 11,800 and it is a typical "Resistance turn Support" strategy and probability heading toward 12,800.

Nov 7, TA for STI

• Trend - Side
• Momentum - Average
• Support 1 - 2760 
• Support 2 - 2700 
• Resistance - 2880
• Candlestick - Gap up shooting star (short term bullish but with shooting star reversal) 
• Volume - >50D MA
• Pattern - Upward Slope, with higher Highs and Higher Lows (long term is bullish)

STI is now trading in Side Range o f 2700 and 2900, overall TA signals are bullish. STI index to watch is 2880 which is aligned with 100D MA. If STI breaks through resistance and 100DMA, it will enter into a new range of 2880 and 3000.

Nov 2, TA for STI

Trend - Side
Momentum - Overbought
Candle - 2 black crows
Volume - Average
Pattern - Upward Slope

2 white soldiers + 2 black crows = ZERO. When the STI broke 2700 and the march toward 2900 with 2 white soldiers with strong volume are positive signs. The only resistance to clear is the 100D MA, if it can break it, it should march higher high. In fact, with the strong volume, I do expect some form of slight pullback for a higher LOW signal for a re-buy. Unfortunately, the 2 black crows appeared and now signal is side trading into 2900 and 2700. STI to watch is 2750 (50D MA) and as long as STI don't bleach 2700. It is still a upward momentum.

Oct 31, FA for NOL (Annual Report)

Oct 31, TA for STI

Trend - Side (resisting at 100D MA)
Momentum - Overbought
Volume - 2x 50D MA
Candle - NA
Pattern - NA

In my last week forecast, the STI should be targeting 2880. With 2 strong days of momentum, It had broken the Resistance and turn support. Another very bullish signal. The new trading range is now at 2880 and 3000. What to watch for next week STI? 100D MA 2900. 2x volume advancement observation are not so common, and if it arrives - it is indicating institutions buying in. Those STI 2700 and 2500 should remain a history. Should I buy now? Likely momentum is targeting 3000 and most likely 3200.

Oct 28, TA for STI

STI is now trading at the new resistance of 2882. The new trading range is 2882 and 2700.

Oct 24, TA for Global Indices

DJI is trending above 100D MA, broke the downward slope, testing the resistance leve and finally 20D MA testing the 50D MA, a nice combination of a bullish sign.

 FTSE had broken the 5400 resistance, and marginally trending above the 5400 level. It seems like a resistance turn support. It trending above the 50D and resisting the 100D MA. The MACD is above the 0 level and histogram 4R1G (bullish reversal). Overall, the technical signals are positive for LONG.

Let's look at the overall performance chart indices, the best performing index is the DJI breaking resistance and the worst performing index is the HSI.  The USD index is retreating the gain, as DJI gaining upward momentum. One thing to note is the Gold is stabilising or remains relative flat.