Trend Watch:STI looks very topish with a head and shoulders pattern

Posted by Drizzt
June 24, 2010

Alot of sites are pointing that head and shoulders pattern, which is a bearish pattern, is observed on numerous indices.

I think lets trade with skepticism in mind, plan when it comes to fruitation and plan when it does not. This pattern have not been confirmed yet so until we see confirmation this is very likely still very bullish.

Here is a chart from Wealth Buch. What i observe is that the potential left shoulder volume seems to be equal to the current volume. Although probably due to world cup the volume on the left should is lesser (though i can’t really tell). Head and shoulders normally have that volume profile:

Trend Watch:STI looks very topish with a head and shoulders pattern 2010Jun 4

Trend Watch:STI looks very topish with a head and shoulders pattern pixel

Related posts:

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  3. Trend Watch:Cup and Handle on $EEM?
  4. Trend Watch:Weekly Outlook not looking too good $USO $SPY
  5. Yield Watch:Starhub Engulfing pattern suggest range trading again?
Singapore Stocks, Technical Analysis, Trend Watch

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Comments
Comment by Eileen Ong on June 24, 2010 @ 9:43 am

Informative and gives the reader more wisdom when executing a buy esp when one is not a trader. Thank you

Comment by La papillion on June 24, 2010 @ 10:05 pm

Hi Drizzt,

To see the decline in volume, just slap in a volume MA. You can see it quite clearly. There’s a very clear volume divergence with price.

Scary.

Comment by Drizzt on June 25, 2010 @ 6:31 am

seems to be getting worse.

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