One refuse to go down, one refuse to go up...

I mentioned in my entry last week that I will be up-dating the HSI, DJIA and Nikkei. IT did not happen. However, it is not because I am lazy, I am simply uncertain about the conflicting signals on the 3 charts. 

When I looked at the currency charts, apparently USD seems to have reversed upward, strengthening against all other currencies. I will need an additional week to confirm this.

As a result, I could not figure out what to up-date.

Glancing through my portfolio of interest, I came across 2 charts, STI and KLSE (KLCI). These 2 seems to be going in the opposite direction, one refuse to go up, while the other refuse to go down.

Fig 1. STI weekly chart 

The lock down stopped the descend of STI in 2020 and its recovery continued till 2022. While seemingly reversing down, it did not reach the intended objective and reversed back up due to support from the Bollinger band envelop.

It congested momentarily after breaking through the moving averages made further headway before coming back to retest the 8- and 21-week moving average. I suspect this is due to the resistance at 78.6% retracement line, the same resistance stopping the up-thrust of STI in 2022.

Nevertheless, the moving averages are all climbing upward, supporting the continuation of STI up-ward. STI is in fact very close to its previous high in 2022.

Fig 2. KLCI weekly chart

The recovery of KLCI since 2020 is much weaker and the momentum depleted even before 2021. It retested the trendline and retreated in 2022. It is presently getting close to the same trendline again.

While there is a projection measurement indicating a huge advance up-ward, at the same time, a more minor projection indicates continuation downward.

I feel that while there is indication of up-trend, there might still be more down trend before its reversal. Partly because the moving averages are in alignment of down trend.