September 17, 2016
Trading is easy! Sell resistance. Buy support.
Nothing can be more easy than this! True or true?
Buy Support Sell Resistance
When price action closes below last high, the price action is respecting the high, and the high is call the resistance. We sell resistance, as resistance is like a ceiling, price action cannot go any higher. However, when the price action begin to close above the high, the resistance. The resistance is no longer valid.
Vice verse, the other way is true. When price action closes above the last low, the price action respects the low, and the low is call the support. We buy support, as support is like a floor, price action cannot go down any further. And when the price action begin to break lower, the support is no longer valid.
Where is STI?
Picture worth a thousand words. Base on the chart, STI is bearish, the market is bearish.
September 16, 2016 Straits Times Index, ^STI Weekly Chart
Moses Singapore Stock Analysis
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