22 May '11, 1pm

OCBC Arrives At Apex; Will Choose Path Of Least Resistance – SharesInv.com

OCBC Arrives At Apex; Will Choose Path Of Least Resistance – SharesInv.com

After consolidating the past two months, OCBC has arrived at the apex of a triangular chart pattern. This is where market forces collide and a subsequent break out of the pattern will take place. Triangle patterns are defined by a resistance (top) and support (line). Symmetrical triangles have a high likelihood of turning out to be continuation patterns. In the case of OCBC, continuation points up. But price can move the other way too since high probability does not mean certainty. There are two scenarios here: 1. Price breaks the triangle on the upside It will clear the over head trendline (dotted line on top) and depart from its moving averages. If it moves above SGD 9.79, which is the early-April high, it has a good chance to attempt its 52-week high again. This is a setup that bulls will be looking out for. 2. Price breaks the downside It will not just clear the trendl...

Full article: http://www.sharesinv.com/articles/2011/05/22/ocbc-pattern...

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