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Passionate about the markets and Technical Analysis. The learning never stops!

Monday, July 13, 2009

Bullish Divergence in DJ


Saw this on 13 July 09, before US markets open. Looks like a bounce in DJ is imminent with the bullish divergences. Want to see if it can propel it above the H&S neckline especially now that the weekly stochastics are at oversold and possibly turning up again. Could mean a negation of the recent H&S breakdown if that happens?

Many have been calling for a retest of March's low (or even new lows) recently. I have been skeptical though as I have been cautiously bullish (esp on STI) since 4 May 09 when it went above the horizontal resistence at 1950 (for STI). Nevertheless, the bottoming of a bear market and the start of the next bull is always a treacherous period and I am mindful of a possible wave 2 correction (with a higher low than March's low) happening before the uptrend could resume.

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