Thursday, July 26, 2012

Where is the Chart of STI heading?

Many people might be thinking where is the Chart of STI heading, lets do the chart analysis together and see if we can find out anything interesting.
Mid Term wise
Trend can be identify by the parallel channel drawn in the chart, STI is traveling upward in between the 2 black line sloping up. Mid term resistance

Short Term wise
Did anyone realize that STI had been forming a new high every 3 or 4 days since 4/6/2012 when it is at its lowest point, however right now the "new high" trend has been broken (from the recent top 3039.77 till today, it has not forming any new high for the past 4days and today it also form a lower low than previous day. Simply saying, it is "possible" that we are at a short term reversal, short term support at 2970.

Some people might also realise that right now STI also did not form a newer low for the past 3 days, if STI breaks above previous day high (above 3000), it might also signify that market is turning bullish again hence what happen in the next few day will be the direction the market want to us to follow. Lets continue watching