Analysis Brief – 28th May 2009

Good morning all. Sorry I have been very busy with stuff but there hasn’t been much going on, up till yesterday. STI did break out (as I expected) with heavy volume. The next major fibonacci resistance coincides with the double bottom breakout price target.

A possible entry point is for the STI to re-test the 2285 resistance turn support. I will see how the afternoon session goes before deciding if I will do a long at support.

I looked through banking stocks which have been set aside for now, and MACD histograms have been pretty red of late. There is a chance it might be the next cycle for breakouts and I have my eyes set on banks like UOB. There is a pennant formation on the counter.

Expect the STI to turn down once this leg is done. Possibly down towards 1960-2100. Could be a fast and furious one based on wave count.