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My Charting Blog

It is interesting that I start off this Blog when the Singapore Stock Market is heading south. However, this makes it more interesting for me to write on as the market turned volatile. My interest is Technical Analysis, TA for short. I love to look at charts and predicting where they are heading. This blog is or me to record my thoughts on the market. The articles on this blog are based solely on my personal opinion on the charts that I read and readers should not take it as absolute.

3/08/2010

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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