I saw that Singapore STI broke the upward trendline 2 days ago. However, STI was still trading in the pennant range now. It is a tug of war between bull and bear now. There is a likelihood to break up or down at the pennant.
Higher Possibility of Bearish Formation
The current bull market seems to still remain intact as the second upward trendline is still valid at this point (Red line in the following chart). I have also noticed that the volume is dropping as well. There is no way to propell the market if participation is low.
I am also seeing a bearish cross over on MacD indicator as well. RSI and Stochastic are in the oversold region for quite a long while.
Base on this information, I am seeing that STI is going bearish at least for short term as a correction. The support will be 2,274 and resistance at 2,424 level.
Singapore Straits Time Index
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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