Resistance
Yesterday the STI hit the top of the trend channel and could not break through the resistance. Today it dropped back and it looks like Wave 2 will drag on further sideways next week. The political situation in USA is still causing nervousness in global markets. Hopefully things will settle down after the inauguration.
As we head into the new year, I take this opportunity to inform readers that I have not acceded to requests to provide Elliott Wave Principle charts of specific stocks. This is because I am active in the stock market and it would not be appropriate to make recommendations on stocks in which I might have invested or will invest. However, I hope that my analysis of the ST Index will help in two ways: (1) It is said that a rising tide lifts all boats. Thus having insight into the overall market trend will help towards deciding to buy, sell or hold specific stocks. (2) Readers will learn more about the Elliott Wave Principle methodology and will be able to apply it to specific stocks to gain deeper insight into a stock’s trend.
For those who wish to learn all about the rules and guidelines of the Elliott Wave Principle and their correct applications, I recommend a visit to www.elliottwave.com where there are free resources and educational subscriptions (such as Trader’s Classroom). This is not an advertisement and I derive no benefit from mentioning this website. It is just that I have personally found this very useful. And of course I have found the Elliott Wave Principle very useful in my stock trading.
A Happy and Prosperous New Year to all !!