STI a little too much?
Although I am quite happy recently with my predictions, I am a little overwelm with STI. Just last weekend I talked about it going up and Wolla! Here is went this morning. I am however taken aback with the level it went up, a 30 points gap up at the start, this is a little too much, isn't this?
Fig 1 STI Daily Chart
I am now looking at the daily chart of STI and I can see the gap is huge, so this guy better cover the gap tomorrow. My last objective with this index was 2,868, the measurement still remains. the only concern I have is the fibonacci level at around 2,843 (61.8% retracement). It is one of the limits, another one is the Gann Grid resistance which is due tomorrow. Hmmmm... a little too much of a resistance? So it would better contract a little bit before moving on?
As for the indicators, there is not much abnormality in the RSI but if Stochastic is to reverse tomorrow, we would be seeing a divergence indicating a down turn, again. Afterall,I am still looking at a bear tendency and this is the C wave of the B.
If however, it breaks the fibonacci level, the next resistance would be 2,883.
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