Tuesday, August 25, 2009

STI Updates

It appears that STI is going to complete 5 mini waves since 2522.

1: 2522~2570 (48 points)
2: 2570~2530 (40 points)
3: 2530~2616 (86 points)
4: 2616~2573 (43 points)
5: 2573~
......2621? (48 points) ===> Reached
......2659? (86 points)

With these 5 waves, wave 1 of minor 3 of major C should be completing soon.

Pivot calculations:

Pivot 2606.217

R1 2637.643
S1 2587.333
R2 2656.527
S2 2555.907
R3 2687.953
S3 2537.023

Trendline analysis:

STI has broken upwards of the short term red resistance line, and briefly went above the longer term light blue resistance line before coming down to rest at that line.

First trendline resistance at today's close, around 2616, and second trendline resistance fibonacci fan 2660.
Trendline support at 2595 (weak) and 2546 (strong)

Suppose STI ends mini wave 1 at 2625, we might see a mini correction soon to 2573 (50% retracement) or 2561 (61.8% retracement).

Looking at how the waves play out, STI might be heading for a small correction soon before breaking up again.

From chart, the red line and the purple line converges into a point 4 trading days later. The bollinger band (not charted) for STI is also closing up. We shall see a sudden movement soon within these 4 trading days, and by wave counting, my expectations is a sudden upwards movement. That would probably be the mini wave 3 of minor 3 of major C that I'm waiting for.

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