Sun Shine Friday for STI or was it evening star?

I was frustrated yesterday when my service provider failed in up-dating my database. I knew that it was a crucial day for the STI and I can't afford to miss it. I ended up analysing the index and stocks from my secondary source. As if the tragic was not enough, my internet broke down and I was forced to stop half way. I have managed to look at one or two stocks and put in a buy order during midnight.

Anyway, STI today has done a spectacular move with a gap up from yesterday's close. Although not as impressive as the time it fell, it did well to let investors and traders see some light. My stock Wing Tai actually gapped up as a result and my order was not fulfilled. Its must be fate that this money is not for me to have.

While having such spectacular move, how exactly has STI performed and what has it installed for next week?

The chart read from RSI displayed a divergence indicating possibility of up trend from here. Stochastic has also reacted with a strong rebound. while STI gapped up. The two leading indicators does lead me to believe that we should see more positive move by Monday. What trouble me still is the volume that continues to deminish during this period. It still tells me that STI still has one more leg down. Further more, the candle stick pattern demonstrated a potential evening star, indicating a down trend, Monday's move therefore is very important. If it is indeed a down trend on Monday, it may be time to move out again.

Another worrying sign is the behaviour of the moving averages (MA) which was tending towards crossing down. If they (21 days and 89 days) crosses, then it would signifies a bear arrival. While STI still on the rise, the MA acts as resistance at 2,494 and 2,516. There is also a resistance level at 2,451 that may prevent STI's march.

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The weekly chart shows me something else. So far Stochastic continues it south migration while RSI looks as if it is on the verge of a U turn. False break is observed on the trend line and support level of 2,404 and 2,398 respectively. Close watch is needed next week on this index, its volume has to be up when STI moves North, the reverse is a sign of crack growing bigger.