Friday, August 03, 2007

CI (3 Aug 2007)

Weekly chart shown. Weekly RSI uptrend broken. Bearish RSI divergence detected. Parabolic SAR says sell. This week, CI found support at the 20EMA. Based on my theory, if this is broken, then expect it to go to 30EMA (currently at 1284). I'm expecting this to happen as the daily RSI has penetrated the 40 level and the daily stochastic is not oversold yet. Currently, the chart does not show any sign that the bottom has been found.

This consolidation may take up to 2-4 months to clear (if bull is strong). I am looking to resume business only for year-end window dressing or CNY rally or election rally.


Anonymous said...

sifu, what stocks you recommend? what stock you holding? i wan to follow you make money.

swifz said...

please don't call me like that. There are better traders out there. I'm still in the learning process. Check on the links on the left.

FYI, I'm reducing my holding because I have a weak heart :p