My prediction for STI tomorrow

I was at SGH today. No, I am not doing medical check up or having problem with my health....not in a way that I need to head for the hospital. I was there with my FAE to meet a client. Unfortunately, he did not turn up and we waited for an hour.

The client is a youngster who has just graduated from University and he is working for his father who distributes medical equipment. I am not sure if he is a stereotype of the young generation nowadays. I remember when I first met him in a meeting, he seems to assume others to have the same intelligence if not lower. What he found difficult he assume the same to others, too, regardless their experience in the field. I think he has a lot to learn.

Anyway, he let us waited for an hour without up-dating us if he was coming, when we message him, he kept feeding back that he was on his way, but eventually when another person picked up the phone, we noted that he was still working on a machine. seriously he really need to learn about time management as well. Keeping others waiting without being able to meet the time commitment is really inconsiderate!

This reminds me of another engineer of mine, fresh graduate, relatively good result but he is the centre of the world. He assume no one else has the level of knowledge he has, and I sure gave him a shock on how big the world is.


Fig 1 STI Daily Chart

While I was out, I did not know that STI actually went up by about 30 points today! However, I want to make a brave prediction for tomorrow. I predict it will be down tomorrow, why?

Stochastic and RSI are reversing up on daily basis, so by right it should be moving up.

The thing that make me think it is coming down is because STI is stopped by the descending 21 days moving average. In addition, STI is moving into the negative gradient of the Gann Grid lines. Further to that, it is reaching a 61.8% Fibonacci retracement line. Maximum leeway for STI is about 2,787.

So why the "brave" prediction? This is because DJIA is arrowing up by 243 points as I type and the chance for STI to go up seems high. If STI is to shoot up tomorrow, what would it be then?

My guess is a gap up to break the moving average and Gann Grid resistance. But my firm believe at this moment is that it won't go far and would fail to break the previous high at 2,821. The crossing of 21 days moving average on 89 days moving average on 21st May 2010 more or less confirm that STI has reversed.