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Sunday, May 23, 2010

Rebound Imminent, Cautious Remained

STI loss 218 points in 7 consecutive sessions after failing to break 2,900 twice. DI- is over extended while RSI is oversold. Rebound is imminent at the backdrop of Dow gaining 125 points on the last trading day of the week.

Resistance : 2,775, 2,815, 2,857, 2,900



Ever since STI traded above the 200 SMA on May 5, 2009. It has never touched the 200 SMA again. Last Thursday, the index has penetrated the 200 SMA as well as breaking an uptrend line. These are signs with bearish implication. At the same time, the weekly chart of STI is showing clear sign of bearish divergence & failure swing. This leads me to think that any rebound is likely to complete Elliot Wave 4 as shown below. The journey ahead remains bumpy and bearish bias.

Target at 2,420 remained.


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posted by Market Wizards @ May 23, 2010 Comments: 0