weekend charting 22/01/10, page-9

STO has a really complex chart, so I have cut it down to just the relevant stuff for the immediate future. It has been trundling along in a slightly ascending, basically consolidation phase. The fork by the way is pinned in the general area of the red circle. It tested the top tine, it came back and sought support at the ML, broke down,tested the bottom tine, rallied but did not have sufficient oompf to reach the ML (bad sign). It came back down to the bottom line, banged it a few times, broke down, and is now back testing it as resistance.

Price is below ema8(green) and ema8 is below 34(gold), which is not good. The stoch is way down and in position to rally. You need price to get above ema8 and that lower tine.

If you want to draw the ST fork which frames the current decline, the swing points are 2/12 14/12 and 8/1. Drawing it in for yourself will tell you when the ST decline has it's trend broken.