Thursday, October 8, 2009

STI Long Term Chart

I was trying to look into the longer term charts to see if I could get anything bullish out of it. However, try as I might, I can't find one at the moment.

We can see the long long term dark yellow channel which STI has been since 1990. The resistance was hit 4 times in the past, and now is the 5th time. It was breached at the 4th hit, but it has since come back down.

If STI still cannot breach this resistance line soon, then things could get quite bad... Perhaps this is the reason why some people are starting to raise shorts.

Shall see as we go along... STI is still doing ranged trading. Perhaps I shall look into S&P 500 to try and see if there's a correlation, since it has been observed that Elliott Waves of larger degrees tend to move in tandem for different indexes.

While there may be further upside, it will be an uphill task. Not wise to buy for super long term at the moment...

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