In my earlier post of STI stock market trends , I mentioned STI was sitting on the support and there are some down side pressure because no significant volume to support the white candle.
I am reviewing the STI trend today and I am changing my view. It looks like STI has started to rebound and forming another higher low, this is an important behavior of a up trending market. Volume is picking up as well in the last few days to support the uptrend.
It is important to monitor in the next few days to see if STI can break the 3269 resistance, if it breaks, it will further reinforce the view of a bullish market.
While STI is moving, it will be interesting to monitor the index stock as well. The index stocks will move in order to support the move of the STI further. SGX is one particular counter that I like as it correlate to STI and move in tandem with STI pretty well.
While I look at the indicator, stochastic has been ranging above 50% and it has just looked to nicely rebound from the 50%, this additional data helps to reinforce the view of a bullish market as well.
Remember, technical analysis is just a way to analyse and increase probability of success. Do not treat it as holy grail. Whatever I am documenting here is for my own reference and learning, do not take it as it is a buy call or sell call. I am just hoping we can all learn and be profitable together.
DISCLAIMER: This information does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
