Friday, December 09, 2005

GK Goh (G41) as requested


We can use volume to gauge the momentum or intensity of the price action. Today 72 K Vs 357.7K of the last 10 period averages was not a good quality volume sign. The sloping down of the Momentum indicator and the continuously dropping action of the MACD envelope work in synergy to hammer down the bull. This means the lack of volume consistently would confirm an inevitable downward trend soon. Furthermore the 2 signals lines of the MACD are screaming overbought with its height way above the zero line. Price drifting a way from the Bollinger Upper Band speaks similar story of price about to go south!
Except for the dangerously Williams % R sinking to -55, all other indicators seem acceptable.
I would have called a sell if not for the software’s rating of MACD as bullish base solely on the MACD signal still above its corresponding MA signal. Other powerful indicator that is, the candlestick; shown in  the chart as Bullish Harami by the charting software, although to me, it don’t look like a  prefect Harami. However, this is suggesting an exhaustion of the preceding engulfing bear, revitalizing the possible would be bull soon. Candlestick itself normally requires another white candlestick to confirm its feasibility.
In short, the reward of holding do not warrants the risk attributed to it. But it all depends on what you want. I also see not harm to watch a while more!

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