STI closed higher today to form a white candle. However, does that signal an up trend?
The market is now trading at the oversold region. STI closed higher today due to the positive effect from HSI. However, the overall volume is not very high, suggesting that it may just a short term rebound and the gain is not lasting due to lack of market participation.
I looked at the STI weekly chart and spotted an important signal on STI.
I saw that STI broke the upward trendline that starts from Apr 2003. This is the 2nd time that it broke the trendline. The first time happened in March and the market did rebound and rally up. At that point, I thought it was the end of the correction that starts from December last year. I was pretty bullish that the down trend was over.
However, the rally did not continue and the market fell and broke the trendline again this time round. Do you think it will be supported and rebound up?
I am not that positive this time round. I think it will break lower and I will be looking at the 200w MA as the key support. Coincidentally, the 200w MA will be around the 2700 level which is very near to the previous low. That would be a very strong strong support.
If this key support is broken in the next few week, it will be bye bye to the bull market and you can start to open more shorting position and profit from that.
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.
This is a popular subject with great data so well done on your success and interesting topic it should be discussed. Did you totally agree with the top half of this? The rest was fine and informative. Ill check back soon for any added comments, thanks.