I was having some exchange my my friend today about STI and the Fibonacci retracement came up. I mentioned that I did a brief wave count and this should be a fifth wave that STI is having. I was asked if this is so, what might be the level under Fibonacci.


Fig 1 STI Daily chart

So here is my wave count, although I am a little sceptical about how accurate it is. It will have to do. Base on the theory, 5th wave is to be around 0.68 of 1st to 3rd waves. So the 5th wave should reach 2,869.65.

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