01 July 2006
STI Double Bottom Formation Breakout With Heavy Volume and Breakaway Gap - Bullish!
STI Daily chart - Double bottom formation (db) has been broken out on the upside and confirmed by heavy volume and breakaway gap on the breakout day. RSI and Macd support this view, too. The gap is a breakaway gap because there is a double bottom formation below this gap and volume is heavy on the gap day. Upside resistance resides at m50 and m100 at around 2473, matching with 50% of rebound of total fall from 2666 to 2278. In short term, STI is likely to consolidate at around current level, even close part of the breakaway gap before taking out resistance at 2473.
STI Daily chart - Double bottom formation (db) has been broken out on the upside and confirmed by heavy volume and breakaway gap on the breakout day. RSI and Macd support this view, too. The gap is a breakaway gap because there is a double bottom formation below this gap and volume is heavy on the gap day. Upside resistance resides at m50 and m100 at around 2473, matching with 50% of rebound of total fall from 2666 to 2278. In short term, STI is likely to consolidate at around current level, even close part of the breakaway gap before taking out resistance at 2473.
