STI bull coming to an end?

When I restart my chart reading "career", I wanted to make some changes to my techniques and focus on weekly more to look at a bigger picture. I do not want to focus too much on details because I have found that I would be looking at the tree and miss the forest. As time progresses it seems like the movements is leading me back to the daily charts, because no matter what, I need to monitor the reversal. The thing is that if there are changes coming, it starts in the daily chart.



Fig 1 STI Daily chart

The recent movement of STI has prompted me for a close monitoring as I have blogged earlier. I was relieved that the confirmation of the Doji star did not come last Thursday. However, probably these stars are omen in a way because by today there is a new formation, Engulf. This is right after another Doji Star followed by a 75 points bar on STI. Okay, all is not yet lost because Engulf still requires a confirmation which is tomorrow.

The RSI and Stochastic on both daily and weekly though is not helping, they are very persuasive to ask STI to go down. This will mean that the fate of STI is very much like HSI, testing its trend support.

The trend support on weekly basis is still at 2,576 while a possible resistance at 2,692. on daily basis the trend support remains at 2,581, coinciding with the 21 days moving average. It is also possible that STI is working on a triangle formation? Like my teacher said, it is like a flower slowly unfolding itself in front of you. So? Wait and see......