If you have been following my posting earlier, the recent stock market crash on the Singapore Straits Time does not come in as a surprise to me. The reason is simple, there were many bearish signals we can observed using Technical Analysis way before the actual stock market crash.
STI started breaking the 200w MA support after ML take over and Lehman collapse in Sep, we also continue to see that STI broke the Fibonacci support one after another. The most recent one being the breaking the 61.8% Fibonacci support being extremely bearish signal.
I have also been cautioning myself that the market can indeed dive all the way down to the 2003 level which is near the 1,200 level. I arrived at this prediction using Fibonacci technical analysis. 61.8% is the last Fibonacci support, breaking which may lead to the next support at 100% which is the 2003 low.
Although I do not wish that to be true, but I need to keep reminding myself to be careful. Meanwhile, I will be looking at some classical technical support to see where the Singapore Straits Time Index can be supported.
Dark Candle and Possible Lower Low Formation on Singapore STI
I saw on last Friday a long dark candle formation, but that also break the previous 2 doji formation and support and that appears to me like a break down formation. A break down formation may lead to a lower low formation. Suggesting a continuous down trending market is still intact and I am not seeing any reversal pattern.
Volume divergency also disappeared as the value investor has rushed in to support the market last week during the technical rebound, but I see that is not sustainable.
My conclusion, let’s exercise extra caution in this volatile market, I will still be looking at shorting in my mind now, Long is definitely a NO NO even many people are arguing that it is a good time to do bottom fishing now. I myself think that the market has not reached its low yet.
That’s what the technical analysis is telling me now. What do you think? Do leave me a comment and we will all learn together.
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Singapore Straits Time Index Stock Market Crash
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
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