STI Mid-week updates

Trend: Sideway, downwards bias

Last week, we said that the market has turned and the trend is up. We were spot on. STI rebounced with 6 sessions of green, moved up from 3100 to the 3180 level. So what could we expect next? Will STI continue with its up trend?

STI 3180 is a strong resistance the wave must cross and remain to continue with this up trend. After continuous sessions of green the waves are showing exhaustion. In addition, the waves are now ebbing up on low volume. There is a high chance that the market will drift lower from here. And will do so until the end of June. The first support level is STI 3100. STI 3100 support must hold, otherwise the next support level is 3050. As such, if you are intermediate trader, you may like to sell your positions and stay sideline for the correction. Short term traders who have held on to their positions from our call last week may like to realise the profit now, and stay sideline as STI approaches its 3180 resistance.

STI Mid-week updates

Trend : Up

We were spot on that STI stayed sideway with a downward bias in our last update. What does the waves tell us from here on?
STI 3100 held up to the bear onslaught very well. Signs are showing that a rebound is in the pipeline. This is a good opportunity to pick up stocks. Intermediate traders may like to go long and hold the stocks till STI nears its resistance at STI 3180. Short term traders may go long and be prepared to hold on the stocks till next week for more gain.  

Trend : Sideway

The election rally that started a couple of weeks ago is now losing strength and momentum. STI likely to be aimless for this week, until 7 May, election day. A potential trend reversal to the downside may occur. A violation below the 3150 support is the signal. With a sideway market and a potential bear at the sideline, intermediate traders may like use this  week to reduce their positions. Short term  traders may like to stay sideline until the market direction is clearer.

Trend: Sideway, downside bias

Instead of charging through 3200, STI went sideway last week; range bound by about 60 pts. This is a sign that the bull waves that started a month ago has lost its momentum. The sideway trend is likely to continue into this week. STI failure to break 3200 last week, will make it even for difficult to break 3200 this week. As such STI is expected to range bound between 3180 to 3120. Intermediate terms traders may like to take some profit and to recover some capital on their long positions. And wait for opportunity to buy on dip. Short term traders may like to stay sideline this week.

STI Weekly Preview

Trend: Bull trend intact.

The election really is still strong. And should be able to carry STI pass 3200 before the middle of next week. After which there may be a minor pull back before it continue to challenge the 3270, previous high.
Next week the focus is on earnings in US. Unless there are major earning disappointment, STI should continue to charge upwards. Long term traders, who have bought 2 weeks ago, should continue to hold their position. Short term holder may like to sell on really and to buy again on the pull back. 

STI Weekly Preview

Trend: Up

The election rally has began. STI is going to enjoy multi-weeks up trend from this point onwards. It may pull back a bit to let off some steam for the continuous rise from last week. This pull back will present an opportunity to pick up some stocks. Long term traders (who have closed their short recently) can now turn around and go long during any pull back opportunity. Short term traders may like to buy as the stock is moving up to ride the up tide.

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.