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Wednesday, February 5, 2014

STI Technical Analysis Feb 2014

The STI has violated an important multi-year uptrend line. In the near term, there is a likelihood where the index may stage a technical rebound to 3,080 ~ 3,100 since RSI is oversold. This is known as the 'return move' in technical analysis usually happen after a trendline violation. The target is derived from the support turned resistance of the recently broken uptrend line.  In the mid to longer term, the STI may head toward the lower boundary of the downtrend channel to 2,880 ( which is Fibo 61.8% from a key peak and trough ).  If this level is taken, we may look toward 2,700 as the target.