May 23-27, TA for STI

May 23-27, TA for STI Index

• Trend - Side Trending
• Momentum - Moderate at 40-60% for Stochastic and RSI
• Resistance - 3170 (still hold as of May16-20)
• Support - 3120 co-incide with 200D MA.
• Moving Average - Index are trailing along and above the 20D MA. 
• Pattern Formation - Ascending Triangle
• Candlestick - A inverted black Hammer (probability a bearish reversal) 

STI is trading sideway into a narrow band - as confirmed by indicators. There is a slightly improved on the volume traded as shown on the rectangle area. An interesting observation is the formation of a "ascending triangle" - this is a bullish signal, but it needs to break the 3170 and last historical 3200 - to confirm the "bull run". However, another important indicator is the 200D MA at 3120, once it hits or cross below it - there will be either a strong support or a strong sell down (as it confirmed a downtrend formation). This 200D MA is trader favourite MA to watch out.

The general indexes, we need to understand Performance Indexes among DJI, HSI and STI. All indexes - are entering flat or side trending.