STI correction

I have been trying hard to download my data yesterday but it seems like there is some problem with the server and the download continued to fail after even many attempts. Somehow even after so many years the old problem my service provider has still remains.



Fig 1 STI Daily

I was going through the indices today and saw that most of the world indices retreating. STI is no exceptance. In fact, o all the indices, STI seems to have given a clearer picture.

The chart shows that STI has just completed a Double Bottom (DB) formation with a target of 2,470. Base on standard procedure, it cannot reach there in one go and need to take a breather. So The breather is here now, by theory, the chart should retreat back to the neckline at 1,962.

As the pattern goes, it is in process of completing a head and shoulder, presently touching the neckline. Should the STI breaks the neckline, the measurement of minimum objective is 1,962. Looks too much to be a coincidence.

At present the daily RSI supports the notion of a correction and I suppose we have some time to wait before STI completes its present minor trend. Its present trend support at 2,254, then 2,178. Resistance are 2,361 and 2,424.