Monday, November 22, 2010

Straits Time Index Chart

Straits Time Index today close at 3197 down 6.4pts. So where are we now? According to the chart, we are still on uptrend, so its not time to short yet. We are at the bottom of the parallel channel and also the above 40ma(Support). I think this week will be an important week that we should monitor, if STI really break support, we should exit all the long position and get ready to short. Immediate support at 3180, next support at 3150.

Today market is trading at extremely low volume, not much movement, and trading in small range. Hence not a good time for entry, market seems to lose momentum, even the big boys wouldn't dare to enter. We should be patience and wait for bigger price action accompanied with big volume to determine the direction before we get in. Why is this so? It is because if you are to be wrong, you won't be the only one.