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Wednesday, February 9, 2011

STI - Point and Figure Sell Signal Triggered

Point and Figure sell signal triggered today at 3,165. The target for this sell signal is 2,975 by mean of vertical count. But it will probably take time to achieve and in between there will be technical rebound. During the rebound, there will be illusion as if all is well. But after the rebound, prices may continue to trend toward the Point and Figure target ( in other words, this target is a mid-term target ).

That said ( ie: with the target being 2,975 ), it does not imply one cannot profit from a nimble trade during the rebound. As a matter of fact, STI is quite likely to stage a strong technical rebound after three straight sessions of fall.

On the candlestick chart, current support is 3,120. Next support 3,040.

I am beginning to look at STI from a different perspective. Can it be a Descending Triangle is in the making?