Market Technician

Our weekend Richard Wyckoff  (30-31 March)  class is full. Next class will be in June. Members who have signed up, looking forward to see you this weekend.

Seeing Strength in Starhill Global When I first started out in trading and chart analysis, whenever I see price breaks out from trend line, I often have doubt if  the break is a true breakout or a fake break. With years of research and trading experience, I've came to realise that a stock performance against the market and its trading volume help us to improve the probability of trading or investing into trend line breakouts. In the above chart, Starhill Global, we saw price broke out from its multiple year downtrend line.  Breakout or Fake Break? With the stock outperforming the market (Positive RS Indicator) and strong FFI (fund flow index), we have a strong probability that the stock 's breakout will follow through. The RS and FFI indicators, we have helped to reduced the guessing game when analysing the chart. Join us in our upcoming Richard Wyckoff Method Course to learn how improve our trading probability by understanding and applying relative strengt

Early Warning The above was a chart I shared with our Wyckoff community showing SnP500 climbing higher with a weak FFI reading (FFI is our proprietary price and volume based tool, free for our community, to recognise if funds are flowing and supporting a particular trend). A weak and divergence FFI signifies that the upward trend (mark up) is weak and poised for correction. Within days, we saw the -54 points (1.90%) drop on S&P500.  What's More Important! To add further, the -54 points is significant to our market studies. Its a Bearish Change of Character  for SnP500.  Character is one of the key principles within our Wyckoff community. On a Upward Trend (Mark Up), we expect price to increase with more volume and pulls back with light volume , vice versa for downward trend (Mark Down). On 22 Mar, we saw SnP500 sell off with large volume on a upward trend. This signifies a bearish change of character on an upward move.  Now we are watching closely for further bear

Above is a analysis on Rex Int which we saw huge trading volume, together with other oil and gas companies such as KrisEnergy and Ausgroup. We hope to see trading volume picks up in the next few days in order to see the stock reaching its potential objective at S$0.086-S$0.088 level. Currently, the stock is trading below zero or negative for both of our Wyckoff indicators, the RS (Relative Strength to Market) and FFI (Fund Flow Index). We hope to see these indicators pick up and cross above zero and we should a sustainable mark up from here. For mid-term traders who have already entered the stock today can apply 10D SMA as a trailing stop.