STI - The Reversal

I am going on a trip again. No, not tomorrow but next Monday. I am heading for Vietnam for 2 seminars. My vendor wants to have a road show to push for the brand to be inprinted to every person in Vietnam. The trip will take about a week, 2 1/2 days in Hanoi, 2 1/2 days in Ho Chih Minh City. It such a pity because it is time for counter wave and I should be close to the market.


Fig 1 STI Daily Chart

STI has again out performed itself. It has broken the 23.6% Fibonacci retracement support at 2,667 and closed below it. At the same time, it has completed the 5th wave, at least this is what I think. The indicators are also showing divergence, as long as tomorrow end closing up.

I think the 4th of 3rd wave is in order by now as STI is now supported by the positive gradient of the Gann Grid lines. It should be climbing for quite a while. Even though it closed lower than 8th Feb 2010 (2,665), it is still possible with a head and shoulders with negative gradient neckline. Then again, I can consider the breaking of trend line and we have a double top. Measurement of objecitve should not be deferring too much, though.

The 4th wave might be a period of congestion, if I base on the length of the left shoulder, it will take around 3 months to finish. But not likely to follow the same height at 2,947. This is due to the 2 moving averages of 21 and 89 days.

Specking of moving averages, both 21 and 89 days have completed a golden cross 2 days ago, I have missed this earlier. It is now confirm that a reversal has resulted. We are in a ber market.