Gap fully covered

Figure 1 STI Daily chart

I feel that I am slightly out of touch these few days after returning from my oversea seminar on bathing. Of course I took more time in taking my bath now as I have found the relaxation that it provides. The charts on the other hand is slightly out of phase with me and I need some time to get used to them.

I was still quite bullish yesterday when I saw that STI was supported above the gap. Unfortunately today it gave me a warning sign with fully covering its gap. It indicates that there will be very limited upside as a full covering of the gap means weakness in the direction it is travelling.

The RSI has been coming down for 2 days now, Stochastic is still showing an upward movement supporting the up trend. It does makes me wonder if the A of B wave have already completed and now it is doing the B of B.

There is a possibility that STI will retrace back to its previous low before moving north. What I see now is the resistance at 2 places, 2,355 and 2,398. STI might find it a little hard to reach 2,398 since the 21 EMA is resisting at 2,381. The nearest support for STI is 2,260.

While I hate to admit it, it seems like bear is confirm with the 55 days crossing 89 days EMA from the top at the level of 2,450, happens to be the next resistance level.

Although an island reversal has been created, it was quickly followed by an Harami with confirmation, the turning is rather fast. As such I should now expect more south migration with support levels as mentioned earlier.