Monday, February 26, 2007

See U at 1300?

Everyone is very bullish. OSK says see you at 1300. But today's chart action tells otherwise. Everyone expecting Telekom to push up the index but instead, the reverse occurs.

Looking at the daily chart, one can detect bearish divergence. So how do I interpret it? I think that weakness is coming. If the index bounce off from 1267, then uptrend intact....but if it closes below, then expect correction to the region of 1200 to 1230. Does it mean general weakness or only bluechips? Maybe rotational play for penny shares?

Anyhow, don't go into panic buying mode (many gaps up). Wait for the right moment when the volume is low and the support still holds.

1 comment:

Anonymous said...

good call swifz, you're the only one who could see that the index may come down.