STI – The messy Bull

Trend: Uptrend, 20ma up, Macd above 0

Support: 2800 (200ma), 2745

Resistance: 2885, 2930

Observations
Candlestick – Long White candle
Histogram – 4r1g. No bearish divergence.
RSI – Around 50%. No bearish divergence.
Stochastic –Bullish cross is already seen 1 week ago. Around 75%.
Bollinger Band – Trading close to mid band. Starting to squeeze.

Conclusion:
STI got saved from the downside last week as it failed to break the 200ma despite global market showing bearish strengths. It turns out that STI is very resilient to any “bad” news from everywhere. This might a sign of bullishness in STI or is it just a “bull trap”?
The trend of STI remains uptrend despite the weakness last week. But it has been struggling in a cluster of MA lines and it manages to break through 100ma yesterday. This break triggers a buy signal in the MacD Histogram which could mean that the bull is in control.
To confirm that is not a whipsaw movement yesterday, a break of 2885 resistance level will be needed. On top of that, if 2885 level is being broken, it will mean that STI will continue its uptrend movement and get out of this messy situation.
On the other hand, if this bullish signal fails to confirm, STI might go back into the messy situation where all the MA lines are. But the key level will be 200ma again. If STI breaks 2800 level again, it could mean that STI might be turning downtrend instead.
But for now, as there are multiple MA lines below the current level, it might be a tough nut to crack.

What to watch out for this week:
1) Confirmation of the bullish signal by breaking 2880 level
2) Failure to confirm the bullish signal means short term sideway movement

Trading strategy to adapt right now:
- Look to long when 2880 level breaks.
- Stay sidelines if bullish signal fails to confirm.

*Disclaimer applies