The STI plunge...

I am not really in a happy mood by the evening today. No, I was not affected by the stock market, in fact I have no idea what happened until I check the chart. My last check in the morning only registered a 22 point drop.

So what was my anger? My team was engaged with a customer on a project. The Engineer worked for a few months to improve on the design to hand the prototype to the customer. We have received a good news last weekend that he was to transfer the project to his sub-con. This means that he would be going through pilot run and mass production! The projected volume of the mass run is substantial.

Yet my sales team have very luke warm response to the news, in fact, almost nothing is heard from them. It turned out that the sub-con is a bad pay master and they were contemplating to drop the opportunity! For the few months we were working on the project, no one on their side actually check up with the customer on his strategy and only until the project come to a close that they realise its a no go and would just drop the opportunity wthout a single consideration of the work put in? Damn!


Fig 1 STI Daily Chart

Well, I guess STI share my sentiments today. I was expecting some pull back before it plunge further, it seems like STI can't wait! I was lazy in my entry last night because I was not expecting the plunge, my registered level was 23.6% Fibonacci support at 3,171, and 32.8% Fibonacci support at 3,155. I never thought that it will go as far as 61.8% Fibonacci of 3,126. In fact it went below to 3,126!

But then, with both Stochastic and RSI digging underground now, It is also supported by the probable neck line of 3,119. Most likely STI will rebound for the next few days. It is also possible for it to form the right shoulder this time, afterall, weekly chart only register the beginning of the fall.

If however, it fall through, then the next level of support is the 89 days moving average of 3,097 and support of 3,043.