Past few days technology related stocks rebounded and outperformed the STI index, this has given people the impression that they are rally. Now are they really rally or just a rebound from oversold ? After looking at several of those stocks, I found mixed findings. The TA tools I'm analyzing are Ichimoku and GMMA. Main tool will be Ichimoku and GMMA is used to confirm the trend. Elliott Wave is not used as not all stocks follow Elliott Wave.
In Ichimoku, a bullish is defined by the following conditions :-
1. Tenkan (Conversion) line cut above Kijun (Base) line
2. Senkou A cloud is above the Senkou B cloud
3. Both Tenkan and Kijun lines are above the Senkou (cloud)
Failing to meet all the above 3 conditions have to be very careful and it may just hit resistance and resume the downtrend.
In GMMA, a ......