Weekend Roundup – 3rd July 2009

Couple emails answered, on what support/resistances are. How do they work, how does it form? Different form of support/resistances, eg trend lines, fibonacci and Moving Averages. The simple psychology behind it all.

STI – Symmetric triangle formation, on decreasing volume. Uptrend support around 2250, or around 50MA support. Resistance remains gap fill area till 2320. Weekly chart shows STI closed down 18 points for the week. Failed to confirm it’s hammer candle formed last week. Am cautiously looking for a buy signal to be formed on the weekly chart, which implies a need for a higher closing. We shall see..

Yanlord – Pretty good movement though with lower volume but nonetheless bucking the overall sentiment for a continuation of the breakout.

Next weekend – Will talk about higher/lower highs and lows. Could they imply an early warning of a trend reversal?