Straits Times Index
STI gained 475 points in 7 straight sessions closing above the 250 days Moving Average. 250 MA is the bull / bear divider. Below this MA, the bear is having fun. Above this MA, the bull is in control. The past week rally was extraordinary. However, any upward momentum will be exhausted after some time just like when we toss a ball up in the air. Friday's closing was a spinning top candlestick, a sign of weakening momentum. I won't know for sure which day(s) next week this may happen but I do foresee a decent pull back on the cards. The pull back, however, is unlikely to be too vicious as in it will erase the recent gains. The rally was attributed by the strong hands (institutions). They probably won't let the market falls too much before the public has a chance to participate ( so that they can distribute, my guess ). Furthermore, many people are waiting to buy on dip especially for those who have missed the boat or betted on the wrong side of the market ( like myself ). Supports are at 2,100, 1950 ( support figures updated ).
Labels: Market Direction
posted by Market Wizards @ May 10, 2009
Comments: 0
