China XLX Bollinger Bands Hourly Support and Resistance - TACT Tuesday, December 15, 2009

Price moving between lower and upper hourly Bollinger Bands. As at 4.00 pm the immediate support is the blue mid Bollinger band and violet support area. Rebounce from here will retest green upper Bollinger band and pink resistance zone. If violet support is broken price will drop towards red lower Bollinger band and light blue support zone. Take note of the different colour support and resistance zones.
Posted by Tact at 4:05 PM 0 comments

Sinotel clears resistance turned support trendline - TACT Friday, December 11, 2009

After crossing above the red bold resistance turned support trendline a shooting star has formed at mid-day closing. Immediate resistance is the orange zone. Need to clear this resistance and stay above the red bold trendline to challenge and retest next light blue resistance zone. Stochastics in overbought region short term traders may want to take profit. RSI just below 70 and may cross above 70 if buyers return after lunch break. Those with greater appetite for risk may wait and see how price trades towards late afternoon.
Posted by Tact at 12:24 PM 0 comments

Capitaland retesting support turned resistance trendline - TACT Thursday, December 10, 2009

Failed to clear support turned resistance bold red trendline yesterday. A breakout above this resistance line will push price into pink resistance zone. Need to clear $4.30 to retest 26 Oct 2009 peak at $4.46 . Stochastics approaching overbought region while RSI hovering around previous resistance levels 58 to 60. Immediate support is green zone followed by blue zone. Live chart snapshot taken at 2.58 pm.

DJIA comparison between 1929 daily chart and 2009 weekly chart - Tact Monday, December 7, 2009

In 1929 the DJIA peaked on 3rd September at 386.1 and subsequently fell to the 195.35 low on 13th November. This first down swing only took about 2.5 months and was followed by an upward retracement of 53.42% to 297.25 on 16th April 1930. A rising wedge formation was formed giving an early warning of impending trend reversal. What happened after the breakdown from this wedge was a major downtrend that lasted about 2 years 3 months. The DJIA finally stop declining in July 1932.

As December 2009 begins DJIA is currently approaching a major downtrend resistance line as shown by the red bold line. It is also moving closer to the 53.42% retracement denoted by the red dotted line. There is also a rising wedge formation just like in 1929. Will history repeat itself? Is there going to be a major fall that lasts longer the fall from October 2007 to March 2009? Monitor closely the rising wedge breakdown and the critical support at 6440.08 formed on March 2009.