The Experiment with Fibonacci Arc

Okay, now my index data base is having one day delay. This I mean the Asia Pacific ones, which was not the case in the past. But anyway, I am not using the chart to predict tomorrow but a longer term movement.


Fig 1 STI Daily Chart

Today, I am using the Fibonacci Arc to check on STI. The arc formation is base only on the length of the 5th wave (or C wave).Using the arc, it can be seen that STI is reaching its resistance. Mixing this with Gann Grid, STI is also reaching the apex of the grid which indicates a turning point. Bare in mind that the chart only shows until the movement for yesterday. Today is the day inline with the Gann Grid apex.

Using Elliott's wave count for the latest trend, we should be in the 4th of the third wave down. So a fifth wave downward should be expected. This will coincide with the resistance base on both Fibonacci and Gann Grid. Projecting forward, we should see STI moving towards the outer arc following the Gann Grid line, the target should be somewhere at 2,800.

The indicators are at the bottom and inching up, this seems to contradict with the bearish projection as described above. The thing is that no divergence is shown on the indicators and thus the next bear move would produce such effect.

As for alternate count, may be it is my limitation or that I already have a certain pre-supposition in mine, I can't see any at the moment, but it does not mean there is none.