STI Technical Analysis
The Straits Times Index has been trading in an uptrend channel since Feb 2014 after a breakout occurred from an Inverse Head & Shoulder pattern. The trading range of the channel is pretty wide. Currently, it is about 3/4 from the upper boundary where RSI is not overbought yet. Therefore, there might be further upside potential.
There are, however, two observations that deserve attention :
1. There may be a RSI bearish divergence under development ( unless the RSI do swing higher with rising prices ),
2. The gap up on January 23 may form an "Island" leading to an Island Reversal if this gap is closed with a gap down.
These two observations are pre-emptive in nature or something that we need to be cautious about. It is not something that will definitely happen.
These two observations are pre-emptive in nature or something that we need to be cautious about. It is not something that will definitely happen.
Labels: Market Direction
posted by Market Wizards @ February 22, 2015
Comments: 0
