Wednesday, March 30, 2011

STI outlook

STI +38 to close at 3095 today. Immediate resistant will be at 3100 and major support remains at 2920.

STI hit 3100 resistant today and retrace to close at 3095 which is above 200MA. Long term wise, we see some light, don’t worry of losing out to those who bought lower because if this confirm to be end of the downtrend, It is also beginning of uptrend so lets move in the market slowly (Buy with 10-30% of capital now for 1-3month trade). It will be better if we can see STI profit taking back to 3050-3000 level and turn back up. I am looking for a Higher High and a Higher Low to form in the index to confirm uptrend.

But short term the overall market(Global) is in an overbought position hence we do not think now is a good time to enter.