After slipping on high oil price, Bulls were out in force today and formed many hammers and potential reversal signals among Property Leaders and Marine Leaders. The anticipation for technical rebound yesterday was correct. Now next question, when will this rebound fall over?
Being a careful trader these days, I have 2 suggestions. First option, buy in small lots, buy more if correct and cut if wrong. This will ensure your capital is not hurt if market reverse badly as we can see over the last few sessions. Second option, buy only if most of the leaders are breaking new highs. This is the safest as it more or less ensure you are inline with the major trend.
Guess not what the market is going to do, decide what will you do when market gets there.
I'm currently reading up on William J. O'Neil's book. Really great stuffs! Shall share more once I grasp the concepts.
Here are the great signals I found. Remember, T.A only increase your chances of victory, not a 100% guarantee. Always have a cut loss.
Starhub, morning star formed.
Cosco Corp: Morning Star spotted!
Capital Land: Trap or strength?
