2,809

For some time now, I have been talking about 2,809. It seems to be a magical number and after mentioning and re-mentioning of this number for so long, I actually forgot how it came about. I am even at times doubt the number that I mentioned, looking at STI performance, I can't really blame myself for that.

It is not until recently that this number become more prominent to me. The STI has recently been getting very close to 2,809. The closest it got is today at a top of 2,807. I am in fact mesmerised by STI being so close to this number. Seems like STI is very scared of this 2,809 level. It has simply refuses to touch 2,809 or beyond that.


Fig 1 STI Weekly Chart

As I look at the STI weekly chart, it is really one that you love to hate. It is range bound withing an envelop that neither depict a rectangle, wedge, triangle flag, etc. The index simply crawl at an angle of about 10-20Deg, talk about recovery. I guess the politicians are the best indicators of the market, when they say recovery you can remove "re" and "y", just "cover".

You can't really esimate its projection base on the traditional chart pattern. I am all these while depending on the indicators which have been for some times showing divergences as STI "climb".

I did a trace on my blogs to find when I first started talking about 2,809. I really need to know how this is derived. Honestly, it is not that I am that fantastic on charting, I made many mistakes in my own forecast and I at times doubt my own reading. But 2,809 is so precise to where STI is nowadays, that got to be something.

My trace on the blog indicated my first register of 2,809 was titled Prediction on STI Daily dated 18th Aug 2009. It was actually derived from a Fibonacci calculation of fifth wave target base on the length of 1st to 3rd wave.

IF this is the case, are we seeing a reversal taking place now? Afterall, this is fifth wave target and A wave should be expected.

Objectively speaking, base on the weekly chart, Stochastic is heading up with limited top, RSI on the other hand is on verge of turning down. I see weakness in STI and likely to reverse. For now I would trust RSI a little more.

While I am still having the euphoria over how close I am this time in predicting an energy level. I will still have to assume the possibility of STI charging through this level. The envelop continues to slope up and for now its resistance is at 2,827. The 21 weeks Moving average on the other hand is supporting at 2,748, close to the 2,750 level.