Monday, April 19, 2010

STI Updates

We had some interesting developments for STI last week, especially on Friday.

STI broke new highs, and broke past the 3000 barrier, before some retracement now. Common technical analysis would tell that after breaking past a resistance, the chart would usually come back to test the resistance-turned-support region... and if succeed, will likely proceed to head higher.

This test, in my opinion, has started on Friday, where STI came back down to retest 3000 as shown:

The results of this back-testing of 3000 will be significant, as it will determine whether STI will head higher. Of course, the most significant support would be the previous peak at 2950. On a downtrend, charts will break supports, while on an uptrend, charts will break resistances. So far, resistances have been broken, and technically, there's not much reason to exit too fast yet.

In addition, we also see STI bouncing off the 5 EMA on Fri. The 100 DMA is still pointing up, suggesting further upside. Finally, my EW count shows the highest likelihood of termination near the 3150 region... All these point to a possible new high for STI that should be coming up soon.

Meanwhile, the secondary indicators below are starting to show signs of overbought. Shall see how it goes...


  1. Hi there, interesting blog that you have here.

  2. Just curious, what charting software do you use? The charts you produce looks interesting.

  3. Hi Denzuko1,

    thanks for visiting! I use chartnexus. You can download it for free from chartnexus.com.

  4. Thanks! I'll check it out.

    Btw, for a 27 year-old, you seems to be very into TA. When did you start learning the skill?

  5. Hi Denzuko,

    I started learning last year, but I have since given TA less importance as compared to FA. I only do it once in a while to make sure that the general market is still healthy.

  6. Okay, I am just sharing with you my observation on TA and FA. To me TA is more for trading while FA is investment. The diference is time frame. FA gives a much longer projection than TA and not able to pin point the time of entry and exit. TA on the other hand is more short sighted and is better in knowing the reversal timing.

    But as long as you find a strategy to use the skills, anything goes. Btw, I don't know if you have also heard about Contrarion Trading, it is also a useful skill and its strength is in stock picking.

  7. Hi Denuko,

    I use FA to choose stocks, and TA to determine if it's a good entry at the current moment.

    Contrarian approach you mean? I do use it sometimes to identify which stocks I should take a deeper look in, e.g. AIMSAMPIREIT. :)


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