Straits Times Index Analysis
STI closes up 5.6% at 1,577.52 on Friday. The strong rally broke decisively a down trend trendline ( blue dotted line ). Friday's closing hits 20DMA ( confluence with 23.6% Fibo ). This moving average has been well tested as shown by the red arrows. The last four days candlestick pattern ( circled ) looks very familiar. Unless STI is able to clear 40 DMA/Fibo38.2%, the rally on last Friday will prove to be yet another bear market countertrend rally. Get ready to short the market if STI gaps up on Monday then retrace below Friday's day high/close (1,577).
Labels: Market Direction
posted by Market Wizards @ March 15, 2009
Comments: 3
