My last post on 31 May showed that Singapore Straits Time Index (STI) enjoyed a bull run so far. STI upward bull run was cooled off last week with a pennant like consolidation pattern. Finally, STI dived 2.61% downward and the upward trendline was broken today.
Is It The END for STI Bull Run?
It was a great 3 months bull run on many stock markets since March. That was the same for STI and many people was making money and you can see them smiling day in and day out. The market reacted positively due to the HOPE of a ecnomic recovery.
However, there are some signs that the economic worse case is easing, which may signal a recovery. Therefore, the market was pushed higher and higher. It has come to a point now that investors and traders are questioning whether the recovery is sustainable. This is still too early to confirm now.
Using technical analysis, we are seeing Dow Jones is now hitting with a stubborn and strong resistance at 200d MA. Likely there will be some pull back on Dow Jones.
STI also dived 2.61% today, which can signal the end of the rewarding bull run. I will be monitoring closely tomorrow and day after to look for a confirmation signal that the trendline is broken. For example, the 20d MA is now the support and that is also very near to the classical support at 2,290. One this support is broken and confirmed, the market can retrace downward to the 38% fibonacci support or 50d MA support line.
Singapore Straits Time Index Upward Trendline Broken
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.
Welcome back to InvestMoneyLab, you can now join our Facebook Friend of InvestMoneyLab to get a FREE Book by T. Harv Eker Now! You can also receive latest profitable trading system and stock picks for free in future. Thanks for visiting!
