The disturbances are finally over

I don't know, from the title, I may looked like commenting on the market. Actually, its more about the recent disturbance to my lifestyle. Right after my one week ordeal in Vietnam ( as I said before, there is no fun in business travel ), my parents came. There is nothing degrading about my parents' visit, it is opportunity for me to show my fillial piety to my parents, this is made more difficult since I am not living close to them. But then it also means no time for chart reading at all.

My parents just left throught he 4:30PM coach today and life is more or less back to normal. So here I am reading my charts again, well, I did briefly go through the charts last night but I was overly tired from going out with my parents.


Fig 1 STI Weekly Chart

I took a look at STI last night, while last week which I have missed took STI to higher ground, I was not really that thrilled. The upward bounce was expected. Although the indicators were at the bottom for weekly chart, there was not divergence, so it was too early to tell that it was reversing. What I saw was true and today is the revelation. Unfortunately, I did not record this today so I have to dicard this post mentum prediction.

STI is presently trapped between the 21 days moving average of 2,817 and the 89 days moving average of 2,651. It went down by an approximate amount of 80 points before bouncing back to 2,751, the level which I have earlier placed a support resistance line.


Fg 2 STI Daily Chart

On daily chart, it can be seen that STI went below the previous high 2,769. This confirmed that the whole of last week was a counter wave (3 wave pattern). Another thing that have struck my attention is that the move on Friday went to a height of 2,821. This penetrated the low of 2,775 which was the previous low suspected of being the 1st of the 3rd wave. We are not going to see a 5 wave pattern down because this whole move since 15th April should be counted as a series of 3-wave patterns.

I think we might be seeing congestion at this point before it goes further down. The resistance is 2,821 while support at 2,651.