Sunday, October 18, 2009

STI Updates

This is a continuation from the previous post, and also continued from the previous STI hourly count:

Right now, as a continuation, the current week's count is as follows:

It appears that the Minuette 3 of Minute 3 of Minor 5 of Int C of Pri B was the wave that broke through the 2700 STI resistance. Following that was Minute 4 with 3 clear Minuette waves that ended at 2701.59. Excluding a complex count, I believe that Minute 5 has started on Friday with the first 2 waves as shown.

Following this preferred count, Monday might open red and close green, with Minuette 2 ending and Minuette 3 beginning.

Combining the daily hourly counts, on the daily chart on ChartNexus:

As we draw closer to the end of the rally, the news will get more and more bullish, which is what is happening right now.

Do take note that bull runs or bear rallies end on positive news, not negative news.

I'm expecting the top to be near the 2780 to 2790 region (highest probability), followed by 3000 and then 3200. The upside is indeed limited for mid-term investors/traders, and I will be looking to sell off my Unit Trust (First State Dividend Advantage) soon. I might be wrong, but to me, the upside potential is lesser than the downside potential since STI has crossed the 50% fibonacci level. The trigger to do so will be a surge in STI to confirm my wave counts.

Take note also the divergence present in STI in RSI and MACD (second time I'm mentioning :p).

I will be listing my strategies for my other holdings in a separate post soon.

As usual, Caveat Emptor. Do share if you have a different analysis.

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