STI Technical Analysis
Last week, we mentioned the key support and resistance were 3,040 and 3,120. At the end of the week, both levels were tested. On March 9, STI rose to 3,113 which was closed enough to our resistance level at 3,120. On March 11, STI dipped to a low of 3,024 but closed at 3,043. The index was supported by the crucial support level at 3,040.
Should 3,040 give way in the upcoming week, the index will likely to head down to 2,910. This level coincides with a descending triangle price objective. This descending triangle is, however, not a textbook perfect version because the time to breakout was less than 50% so I am really apprehensive on whether to consider it a valid chart pattern :
Regardless, 3040 will still be the most crucial support level to watch. Once the index dips below 3,020, a new Point and Figure sell signal will be generated bringing the price target to 2,910 anyway.
Below is the view of Colins Twiggs from Incrediblecharts :
http://www.incrediblecharts.com/tradingdiary/2011-03-14_markets.php#singapore
Labels: Market Direction
posted by Market Wizards @ March 13, 2011
Comments: 0
