Friday, August 7, 2009

What's next for STI?

My updated chart with one more trendline:

From the chart, I have identified that tomorrow's trading range could be 2588 ~ 2627.

Again, with the pivot calculations:
Pivot 2606.327

R1 2622.013
S1 2585.813
R2 2642.527
S2 2570.127
R3 2658.213
S3 2549.613

It seems like we have quite a match this time round between the pivot calculations and the trendlines. STI will likely trade between 2588 to 2625 tomorrow.

From the chart, we can also see the closing up of 2 trendlines which I have used to derive my expected range for STI. These 2 lines are closing up soon, which led me to think we will see another sudden movement for STI within another 4 trading days.


Upon closer look, a short term downtrend can be observed. It depends on whether STI can open above 2588 tomorrow.

Then again, the calculated pivot point is 2606, so we should have a good chance to open above 2588 (or so I hope :( )

Finally... a forumer from CNA reminded me that I'm punting badly. And indeed, I did :(
For trading, one should trade with the charts, not with the heart.

I also agreed with milamberz that the chart does look super super bad for UOB... Of all the counters I could have punted, I chose the worse. It was an extremely stupid move which I regretted. The purchase was done without looking at the charts...

My main hope now is the 20 SMA support... UOB went near and came up... The other hope is that the 3 black crows weren't that strong because today's black candle was very short... The final hope is that UOB price rebounded from the 61.8% retracement line + 100 week resistance, and has now cooled down to the 50% retracement line.... Might bounce up from here.... RSI has also come down from 80% to 60%... Also, the weekly chart also shows quite ok.... or so I thought :(

However, the 61.8% fibo fan limited UOB's climb today...

If it's indeed wave 1 downwards which I suspect, I shall exit at wave 2, hopefully with minimal losses.

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