Market Diary:
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Saturday, November 26, 2011

STI Analysis ( Nov 28 ~ Dec 2 )

The Straits Times Index is facing two possible scenarios:

1. An Inverted Head & Shoulder Pattern ( Bullish ):

2. Trapped Within a Large Downtrend Channel ( Bearish ):

Within the next 1~2 weeks, we will know which of the two scenarios will come true. What we need to watch is whether prices will rebound from here and break above downtrend line 1 - this is the first foray toward an Inverted Head & Shoulders Pattern. On the other hand,  if prices continue to dip ( most likely after a short-lived rebound since the market is quite oversold now ), this will indicate the market is opting for scenario 2.