STI and HSI follow up

I am writing this blog at this hour not because I am irressistably passionate about it, but because I woke up with some trouble in my mind and I could not sleep.

I was on business trip the last 2 days in KL for delivery of the solution to the customer. While having a discussion with the customer, the political topic came into the picture. This seems to happen every time I visited him. One interesting comment he has was Malaysia Government is running dry of money and soon it is going to be a net import country. Petronas no longer can support the country with oil money. My guess is that there is no more oil. He further noted that it is a risky move for the government to cut oil subsidies and they would not take such risk unless they can no longer afford it. Anyway, this is not what causes my insomia.

My father gave me some bad news, the beauty salon my mother has is up for sales. The salon has been there since I come to know the world, although I never participated in the business, it is part of my life since young. I have my hair cut all th time until I am 35. The business is making profit but age is catching up with my mom, she can't afford to go on working even at an age of 60-70. When my father told me that they want to sell away the business, a part of me seems to whither. If possible, I would want to buy the business over, but cash is definitely a problem.


Fig 1 STI Daily Chart

Being away for a while is a good thing, because it allows the chart to grow without me being stressed up. As in the case of STI, it continued went up and broke the 61.8% Fibonacci resistance. In fact it has reached the objective of the zig zag move. My objective then was 2,868 and it now reached 2,873.

However, the candlestick pattern is a little worrying, if it is down with a gap tomorrow...er....later in the morning, we should be seeing an evening star signifying the end of this mini rally. This prediction is more or less supported by reversing indicators, both on Stochastic and RSI.

So B is completed for STI.


Fig 2 HSI Daily Chart

As for HSI, how far did it go? Not too much I guess. The wedge envelop is strong to keep it inside. The number of waves accumulated in the wedge is 5 from a-e, the wedge is completed. With the indicators also on reversing trend, HSI more or less to follow STI down, together like brothers.