STI – Setting up for bigger movement?

It has been some time I had made an analysis on STI which I made an expectation of possible correction to happen. Well, the expectation went wrong and caught me off guard. As the market turn bullish again, the fear of correction happens again. Will the market this time round truely go for a correction or just a setup for further upside? Let’s look at STI’s chart:

Trend: Uptrend, 20ma up, MacD above 0

Support: 3244 – 3258 (Rising window), 3215 (20ma), 3144 (50ma)

Resistance: 3313 (Recent high), 3370

Observations:
Candlestick – Long black candle.
Histogram – 3Rs. No Bearish divergence.
RSI – Around 65%. No bearish divergence is seen.
Stochastic – No Bullish crossover yet.
Bollinger Band – Tested upper band and going towards mid band.

Conclusion:
STI manages to break out for a higher high last week to confirm its continuation of its uptrend movement. But what is lacking right now is a formation of a higher low to signal that it can have more uptrend movement or else, the trend might just turn back into sideways. Hence, in order for STI form a higher low, it must be supported at the current rising window support of 3244 – 3258 level or 3215 level where there is a confluence of 20ma.
The indicators are still indicating bearishness which could indicate that the rising window support could not be holding and we should be watching out for the next support of 3215 level instead. However, if 3215 level still fails to hold, STI’s trend might be reset back to its sideway movement and might have a potential to turn downtrend if 3144 level fails to hold.
On the brighter side, if STI is to hold at 3244 or 3215 level, it would indicate that STI remains uptrend and could at least test 3313 level again. As it would be an uptrend by then, 3313 level should break and STI might reach for the next resistance of 3370 level again.
In conclusion, it could be healthy for STI to retrace to the support levels, however, some risk is still there and STI has to keep its level above 3215 or else, the bullishness might not retain. If STI manages to bounce off the support level and head towards 3313 level again, STI should be able to reach the next resistance of 3370 level.
What to watch out for this week:
1) Formation of bullish signal.
2) Breaking of 3244 support and wait for 20ma as possible support

Trading strategy to adapt right now:
- Wait for bullish signals to form and long when there is confirmation of bullish signals.