Friday, December 09, 2005

Swissco (5FG) as requested


Although the Bollinger has spread for the last 5 periods signified bullish endeavors, the last 3 periods were clear indications of a tug-of-war between the bear and the bull. One instant was braking of the bull shown by the doji and followed by another: the more recent one: was just the reverse; the reduced momentum of the bear by another doji. What looked more worrying was the sudden and dramatic drop of volume today. 195K as against the average 10 periods of 659K seemed pale in comparison. This together with the doji confirmed indecisiveness. ADX plummeted south to a mere 15 was telling us that hope of a trendy action any time soon will be diminished.
On the Stochastic, as shown on the chart above, there is a bearish divergence building up against the price. This would mean in time to come, price will slack in tandem with the downward gradient of the Stochastic. Williams’ % R slumped dangerously downwards to -40, while RSI though down but was less intensified, shifted to 64 from 70. Other indicators were mediocre in patterns.
On the big picture, based on the MACD envelope and the Stochastic summary, it is overbought in near term and the fact that 1 envelope down in spite the preceding bullish ones cannot decisively determine the faith of this Sweety. It would be more appropriate to wait and see, and if the current  candlestick pattern of this price cannot decide now, who can?

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