3656 Points Magnificently Defends the Dignity of Technical Analysis

2008/4/28 15:06:21

Many half-baked people claim technical analysis is useless. Then why have the levels this ID pointed out in advance repeatedly reversed the market with uncanny precision? Take this instance of 3656 points — given in advance, its magical effect occurred under conditions of dramatically changing fundamentals. And what was the result? The market action of the past two days has shamelessly and unabashedly defended the dignity of technical analysis.

It was stated very clearly: hold 3656 points, and we continue feasting on steak and lobster; fail to hold, and we switch to salted fish and vegetables. So, everyone, time for salted fish and vegetables. When might we feast again? Simple: wait for the downward stroke on the 60-minute chart to complete.

On the daily chart, 3656 points completed an upward stroke. To continue extending, the key is to reclaim and hold 3656 points. Therefore, this level now carries daily-chart technical significance. On the daily chart, watch the 5-day moving average — as long as it holds, pullbacks remain within acceptable range.

For individual stocks, watch whether strong stocks receive capital support during pullbacks, presenting second-wave opportunities. Additionally, during adjustments, rotation into old thematic stocks tends to become active.

In a moment, a brief update on this ID's medical condition — the final comprehensive results.

Signing off, goodbye.