Exercise caution with Straits Times Index and Hang Seng Index which are both painting potential reversal chart patterns on weekly time frame.
Performance of 30 STI component stocks for April 2018. Straits Times Index was up 185.96 points or 5.42% over end of March. Out of 30 constituent stocks, 19 gained while 11 end in the red.
Looking at base building by Hong Kong listed stock PCCW and Singapore listed Wilmar. Both demonstrate multiple-year supports and positive price action. Illustration with 3M charts.
Master these steps, recognise this highly recurring zigzag pattern to find pot of gold. Example Singapore-listed Keppel Corp (ticker: Bn4.si).Step 1 – Retrace. Step 2 – Consolidate. Step 3 – Up. Step 4 – Repeat steps 1 – 3. Example with Keppel Corp (ticker: BN4.si).
A bear market need not always crash. Sometimes, it can go through a slow motion deflation History provides us with 2 good examples: the post-Subprime crash and the post-Tech Bubble correction. Better not to have preconceived ideas, just react accordingly.