At every price, there are both Buyers and Sellers.
Both Buyers and Sellers never aim to lose, they have exactly the same objective, PROFITS;
No Buyer would BUY if one thinks that price will DROP;
No Seller would SELL if one thinks that price will RISE;
If all Buyers think that price will FALL, then nobody will buy thus price will drop and drop;
If all Sellers think that price will RISE, then nobody will sell thus price will rise and rise;
Stock is not about trading the market; it is all about winning human emotion.
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Bears have been riding the bulls this week, with majority counters saw their price in red. I have been cautious and decided to stay away from the market this week till the tide changes. So is this just a bulls correction or the emergence of the bears?
Channel Pattern broken. STI could see more downside potential, after breaking out of its channel pattern which formed way back in January.
Indicators are bearish. OBV are still around similar level suggesting that people are still quite confident about the market. However, with both RSI (Oversold) and MACD indicator falling constantly, they suggest that the downside momentum should remain. Support level is around 2780.
2 Possible Outcomes.
1. Downtrend Continue - 3EMA cross below 15EMA and 50EMA, suggesting downtrend shall continue in the short term.
2. Correction End - Potential reversal as Gravestone Doji (with very small lower shadow) candlestick is spotted yesterday. However further confirmation is required on the next day. If next day opens above the real body of the Gravestone Doji, it means those who shorted at the opening/closing of the Gravestone day are losing money. The longer the market stay above Gravestone Doji’s real body the more likely these shorts will spark a rally by covering their positions. The Gravestone Doji usually represents the graves of those bears that have died defending their territory.
Channel Pattern broken. STI could see more downside potential, after breaking out of its channel pattern which formed way back in January.
Indicators are bearish. OBV are still around similar level suggesting that people are still quite confident about the market. However, with both RSI (Oversold) and MACD indicator falling constantly, they suggest that the downside momentum should remain. Support level is around 2780.
2 Possible Outcomes.
1. Downtrend Continue - 3EMA cross below 15EMA and 50EMA, suggesting downtrend shall continue in the short term.
2. Correction End - Potential reversal as Gravestone Doji (with very small lower shadow) candlestick is spotted yesterday. However further confirmation is required on the next day. If next day opens above the real body of the Gravestone Doji, it means those who shorted at the opening/closing of the Gravestone day are losing money. The longer the market stay above Gravestone Doji’s real body the more likely these shorts will spark a rally by covering their positions. The Gravestone Doji usually represents the graves of those bears that have died defending their territory.
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