Wednesday, February 24, 2010

STI Updates

In summary, I'm expecting STI to top up soon before rushing downwards in a fast and swift motion.

Longer analysis: STI could be resisted by the 34 EMA and 55 EMA after closing directly at it. The 100 MA, 21 EMA and 13 EMA comes into play as well into the white candle's body. The bullish close yesterday led me to believe that STI might have a little bit of upside left. However, other factors led me to believe that whatever upside left is limited, and any fresh long entry now would really be squeezing out the last drop of juice from the lemon.

From the chart, we can see that there's a potential rising wedge being formed on the dailies. With the bollinger band closing up, the GMMA converging as though it is a spring, a major action is to be expected soon.

And because of
i) the rising wedge,
ii) the overbought indicators in %R,
iii) the lacklustre rise of the MFI,
iv) the fact that the short term GMMA lines are below the longer term GMMA lines,
v) expected wave ii of a correction now according to my rudimentary Elliott Waves count,

I'm expecting the major action to be bearish bias. In other words, STI has a higher probability to move downwards.

And if this downwards move is a wave iii move, it will be fast and swift. Wave i was from 2947 to 2675, a difference of 272 points. Wave iii could possibly be 1.618 times of wave i, giving us a potential 440 points drop, perhaps near to the STI 2500 region. Scary proposition... but possible...

My action would be to wait for the waves to end before any fresh longs, while holding on tightly to me current shares. I might offload half of my Singtel longs just because of this possible turnout.

Good luck trading or investing!

DISCLAIMER: The contents in this website are my thoughts reflections and describe my path towards my goal towards financial freedom as I plod along. It is for your reading pleasure and must not be taken as a buy or sell advice. You must do your own analysis on top of my postings. By reading this blog, you agreed that i am not responsible for your decisions.


  1. Just offering some comments on your blog design-unrelated to the topic, hope u don't mind.

    IMO your blog needs more visual appeal, the colour scheme is rather dark, so adding a few brighter logos/pictures would help. Try to add more pictures(not charts) to your posts. Too much text can be boring. For the starhub post, u can add starhub's logo or a picture of their office.

    Instead of just talking about STI TA, u can explain more about how the indicators work, this could make it more interesting.

    Take a look at http://singaporeanstocksinvestor.blogspot.com/ One look and you have access to lots of information on multiple panels. I would reduce the google ads at the side and replace them with other tabs.

    Also, the bottom of the page looks a bit messy. I would put the "About Me" section at the top.

  2. Hi Hubert,

    thanks for your suggestions! I will try to add more pictures in the future.

    However, for STI TA, I would prefer not to explain how the indicators work in the post because I use the same ones in every technical update. In addition, some of my understanding of the indicators may not be what people commonly know. I will look into this and perhaps start a section on how to read such indicators. :) Thanks for the idea!

    The messy part I would agree. I revamped the site recently, but it's still messy :( I will see what I can do over the next few days, shifting things here and there :)

    Once again, thanks for your feedback!


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