Friday, October 24, 2008
Downtrend still intact
The trend lines still show that the down trend is still intact.
Short term MACD has a bearish crossover
ADX is high, saying that the current trend is strong.
RSI is low, at a value of 27%, however it is not lower than 11% which occurred on 10 Oct ( so that oversold yet)
However, the chart is nearing the lower band of the bollinger band. ( hence reaching a support line)
Judging from the indicators, the STI is going to keep on falling. Looking at the blue lines I have drawn, only short when it reaches the upper of the blue lines, because the lower of the blue lines is acting as a 'support' and the top as a resistance.
some basic explanations of Technical indicators can be found at
*Disclaimer : What ever appears on the blog is for your own reference only. It is not an investment/trading advice. It is always best to consult your personal financial adviser before parting with your money.