Category: Money tips Release Date: 2006-04-12
Market, the most important feature is the nature and strength of long-term trends. Decline in the market is not a threat to a strong trend. Guppy Multiple Moving Average long-term group showed the strength of the trend. It defines the trends in support area.
The analysis shows that the trend strength index fell to 3850 points can be around and still with the fast-moving short-term upward trend consistent. It also shows that the market can be dropped to a Guppy Multiple Moving Average Line the bottom of a long-term group, but still consistent with long-term upward trend.
This is a fast-moving market, it suffers from the activities of investors continued buying support. When the market down, investors as buyers enter the market. Guppy Multiple Moving Average long-term decline in the market when the group continue to maintain good separation, which is showing this situation.
The development of the market decline of two current trends in the definition of the method, it also provides two kinds of help to build index for the next goal.
The first method is Guppy Multiple Moving Average line analysis.
The second method is the trend line analysis. In November 2006 we began to draw a new trend line. The trend line used in February 2007 and March 2007 lows. This upward trend lines provide a long-term support. The slope of this line is relaxed. Market can fall into this line of value, but remained in a rising trend.
As for the calculation of the new price target, the first approach takes advantage of increased trade with the width of the drop. This transaction is located at the bottom with 3450 points at the top at 4300 points. This gives a long-term goal, in 5200 near.
The second method of calculation with the use of a correction. Market activities will be on the consolidation zone runs between the rail and lower rail. Recent events have confirmed their index position. It also established a short-term goals. This slightly bearish at the bottom at 3900 points at the top at 4300 points. This gives a short-term goals for 4700 points.
Consolidation with the formation of a stable trend of an important feature. Correction tape to make the trend to reduce speed, rather than changes in the direction of the trend occurs. Consolidation with the trend to prevent the formation of a bubble. We expect the index of activity more in the 3900 point to 4300 point to a slight correction in the region. In the trend to break the resistance at 4300 points, more than before, there will be some up and retracement behavior. (Compiled Chen)
