STI Weekly Preview

Trend: Down

Looking at last week strong waves up chart, the rebound took SIT back to pre-Japan earthquake level. If STI can sustain at this level, we might be in the midst of the formation of a bottom. Technically this is an important week. We should be able to confirm this bottom by early next week. In the meanwhile, the trend is down and we should see STI backing down to the 3030 support level. Intermediate traders may like to close the short positions from Feb and stay sideline until the bottom is formed. Short term traders may like to buy at critical support and sell on rebound.

Trend: Down

Last week, STI followed Japan plunge and broke its 3000 support. Repeated bad news gave it litttle chance to rebound. Will this trend continue or will STI stage a rebound this week?

The waves says STI to go down to the next support level at 2870. From this level, it might stage a rebound. The rebound's resistance is at 3000. Problem at Japan and ME are still the wild cards that can bring disruption to STI movement. Intermediate traders may like to hold short from last week but watch the strength of the rebound at support level. Short term traders may like to stay sideline.

STI Weekly Preview

Trend: Sideway.

Last week, we were spot on. STI gained some ground in the initial week but quickly gave way as the week progress and drop back to where it started. So with the catastrophe in Japan on Friday, what can we expect this week?

Earthquake in Japan + problem in ME + down grading of Spain in EU does not equal to market collapse. According to the charts, we could even see some strength in the first part of the week. Do not be attracted by the resilience but use it as an windows to reduce your exposure to the market. This is because the market is getting fragile after being battered by the 3 issues mentioned. Intermediate traders may like hold short at resistance. Short term traders may like to buy on dips in early part of the week and sell on rebound.

Weekly Upadate

Trend : Sideway

The strength of the wave to go further up has dissipated. STI is likely to fall back to 3030 in the early part of the week, followed by weak rebound back to its current level (3080). STI is range bound and a new catalyst is needed for it to move up. Trouble at ME and rising oil price continue to plague STI. Short term traders may like to buy at support and sell on rebound. Intermediate traders better stay sideline until the trend is clearer.