Tuesday, May 01, 2007

My Fears Came True

Last night, I mentioned that the last PRIME Resistance (TREND Chart) was too closed for comfort, and that the risk of a Leg 1 of a Bull Break was there. Well, the market played out my fears. Leg 1 of Bull Break has been created, on the TREND Chart (But on the Swing Chart, PRICE is merely heading down to challenge last PRIME Support at 1418.25). My last 2 trades - LONGs, were counter-trend trades. PRICE basically consolidated for a while (3 PRIME PPFs in a row - on the Trading Chart), before that "break", which happened at around 2:24am (S'pore Time). Going into the close, PRICE is still heading down. No signs of it failing, as yet.
However, on the TREND Chart, PRICE is currently deep in PRIME, so SHORTs have to be a little cautious - especially when the first signs of a Minor PPF of Support (Trading Chart) occurs. This would then possibly signal the start of Leg 2 of Bull Break, to bring us back up to challenge last PRIME Resistance (TREND Chart) at 1505.00

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