Thrusting

I did not pay much attention to the market today mainly because I am quite busy at work. Further more, with Dow down for 250 points, chances of opening gapped down is very high. Normally under such circumstances, charts will gapped down before recovers back.


Fig 1 STI Daily Chart

It is to my surprise that STI not only recovers but it managed to closed green. The amount of movement is almost the same as yesterday. In fact, it broke the resistance of the 89 days moving average at 2,834, closing at 2,835. So is this good news or bad?

The problem is here. The candlestick pattern is likely a thrusting formation, which means that this is a bearish continuation. It does however requires tomorrow to confirm the trend.