Update on IEV- The descending wedge was rendered invalid after a couple of drifting bars, but the stock broke out from the resistance line from the previous top. The volume is huge also, which supports the breakout as an institutionally backed move. However, the stock did not close nearer to the day high, which may tempt some traders to profit take on monday. I expect some inside day trading before the stock attempts to break 1.02. Looks promising.
IEV Holdings is a volatile stock to trade, but the momentum has been on the upside thankfully. The stock has not seen any exhaustion yet, based on the bull flag that it is forming right now. If a breakout occurs beyond 0.95, 1.02 is the immediate target.
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STI is converging into the tip of the Ascending triangle, usually a bullish pattern. However, i believe traders should exercise caution as the momentum has been diverging and the volume has been dipping. The index has also started to make lower highs which is indicative of a possible trend reversal.
The US data released recently suggest a recovery in place and the firming up of the Greek bailout plan has boosted sentiments. However the news should be priced in by now and the index is ripe for profit taking. It is too early to take a strong stand in either direction for the medium term, but for the short term the way now, is down. Look for the 2905 support. A good basing pattern is the signal to pick up some good blue chips for the next leg up.