Thursday, June 24, 2010

STI Technical Analysis 23rd Jun 2010

STI looks dangerously toppish at the moment.

My fresh funds continue to stay out of the market. No point going in if I'm expecting the market to correct deeply.

Chart as shown:

The potential big head and shoulders that is looming is really scary at the moment. Especially when it is slanting, this presents a more bearish scenario.

STI rebounded at the 50 dma today at 2850. How long more will this support hold? I don't think it will hold long. Potential upside will be capped at 2890, the 61.8% retracement level and previous top. The 61.8% retracement holds a significant meaning being the golden ratio. 

Even if there's more upside, it will be limited. I will maintain not entering fresh funds yet.

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