A clear picture for STI

I have received a comment on my blog regarding the problem with the small pictures and not able to see clearly on the chart. Thanks to Leo's advise I am trying out a new service provider. Athough I don't see a clear picture attached, a bigger picture can be viewed when clicked.





After a three weeks a turbulance, we are finally seeing some light at the end of the tunnel. By this I do not mean dying but more like a possible rebound. I am actually quite amazed as the chart itself gives very clear signal on where it is going. The accuracy of the read does depends on how much of all the tell tale signs given by STI. So far my estimation only base on reading STI alone and not linking with the DJIA, Nikkei or HSI. So it proves to a certain extend that what ever is happening, the chart factors in already.

On a weekly basis, STI has formed a hammer, indicating a reversal. There is still a need for confirmation from the peice movement. The leading indicators RSIand Stochastic are on a verge of turning upward. This show sign that at least for next week, we may still be going up. The week ended with STI stopped at the resistance level of 2,451 while supported by 55 days moving average at 2,367.

The down trend on the other hand is not at all supported by the volume, which has been deminishing all this while. I believe this is very important as it gives indication of the sentiments for STI.





While STI looks positive for weekly trend, what of the daily moves? So far it is on an up trend, with all indicators trending up, except for RSI which is turning up ward. Volume starts to increase when the index ascended, however, it is still early to tell the whole trend.

One caution that I still have is the urgency in the ascenssion. I am so far targeting 2,490 as a valid resistance, STI is going up too quickly. With the expectation that this is only a B wave, I feel that it may not retrace to the level of 2,666 yet. The candlestick pattern is also worth noting, it is a spinning top which shows that STI is still unsure of its direction, meaning that it will most likely to depend on the next day for confirmation.

However, with the positive signs from the weekly chart, I believe STI will in general be on the up trend it may congest a while at 2,451 level but eventually should hit 2,490. I am looking at ultimately 2,585 level for STI, but that is for the future. I will be looking forward to what STI will unweil to me next.