Thursday, May 20, 2010

STI Rebounding time?

STI looks set for a possible rebound. I counted 5 waves down, and STI has touched the 200 SMA.

My expectations is that if it does break, it will not break this 200 SMA convincingly as this is possibly a 5th wave of some small degree. The alternate count would be a 3rd wave extension, the 3rd of 3rd wave. A technical rebound should be in the works, but it will just remain as it is, a technical rebound. I'm bearish bias at the moment since the mini Head and Shoulders breakdown.

In addition, it looks as if a bigger Head and Shoulders might be forming on the weekly chart. Will have to monitor. This right shoulder should be the cap to any technical rebound by STI, possibly around 2945.

I don't expect STI's move down to go past the 2nd red line before a 3-waves move up for the technical rebound.

My cash level has increased further to 8.45%. However, there's not much that I want to purchase yet, so I shall await better prices for some of my targets patiently.

No comments:

Post a Comment

Please Comment >>