STI - Crucial Week(s) Ahead
The coming 1 ~ 2 weeks is pretty crucial for STI.
First, STI needs to clear the last significant high at 1,868. Failing which, the uptrend is in question.
Next, STI must break the critical resistance at around 1,950 in order that the double bottom formed by Oct 28 low & March 10 low to complete. This will mirror the onset of bull market in 2003.
Personally, I think 1,868 is not a problem to clear. But at 1,950, the index will probably reverse to 2nd & 3rd support. This is a typical reaction for double bottom called 'the return move' ( or throwback ) forming a W V pattern before the next time when the index rally up to clear 1,950. I think this should tally with the Elliot Wave count too.
Next, STI must break the critical resistance at around 1,950 in order that the double bottom formed by Oct 28 low & March 10 low to complete. This will mirror the onset of bull market in 2003.
Personally, I think 1,868 is not a problem to clear. But at 1,950, the index will probably reverse to 2nd & 3rd support. This is a typical reaction for double bottom called 'the return move' ( or throwback ) forming a W V pattern before the next time when the index rally up to clear 1,950. I think this should tally with the Elliot Wave count too.
Labels: Market Direction
posted by Market Wizards @ April 12, 2009
Comments: 3
