STI Review

The resistance on the STI held apparently and backdating the chart a little bit you will see a small gap resistance which got filled. On the downside there is yet another gap support waiting to be filled. Wave 2 of 5 has been ongoing for a week now and perhaps it might be a little premature to call for a downside, but anything goes. Upside resistance remains at 1580 while major support is at 1455-1470.  Minor supports at 1500, 1535 and the current one at 1555 which must crack for downside to continue. It held today confirming the hanging man candlestick but needs 1 more session to be definite. Many counters headed down, but none triggered a short signal yet other than SIA. Let’s see what happens tomorrow and a take below 1555 on the STI is likely to trigger the short signals on counters such as UOB, SGX etc.

Reversal candle observed here, with a mad sell down into the closing. 4.5 will be first support, followed by a small gap support below.

Reversal candle seen here on the dow. Support lines as drawn. It will be interesting to see if the candle will be confirmed.  I am gonna be on leave tomorrow, heading out onto the streets. My TR Jay will take care of my positions for me. Our internal outlook till Q3 was discussed but I will not go into it in detail at the moment. We’ll be looking to see how accurate our time line is with respect to the levels the STI is heading to. So far, step 1 is complete. Now we’ll see if step 2 will come into fruition. That will come if STI tests 1470 again and rebounds off there. To do that, we should get a lower high, and a re-test of the support. For those who have gone through TA lessons, you will know roughly what that means, especially if it rebounds to form a lower high before heading back down.  If that happens and support cracks, excellent trading opportunity and it may be perhaps, the last wave of shorting opportunity for this bear market.

I’ll check back soon!