Prior to the Global Sell-off on Wednesday, the STI is in narrow band with Descending Triangle Formation. In my LIVE chat, I constantly remind viewer the 2700 line, is that Market cannot afford to break it, as it aligned with a fibonacci support level of 61,8% (2589) and Classical Support of 2680.
Will the market gains momentum and swing up? From the technical chart, there is a strong downward channel trendline. It is aligned with the 20D MA resistance. Since then start of the fall, STI index is not quite successfully trend above the 20D MA. The downward channel will still persist for a period of time. The little "white hammer" might signal a slight rebound. I would not advice you to catch the technical rebound as the higher HIGH is limited and restricted by MA. There will be more potential downside, as Market is deliberately wanted to test the support.
Another view of the STI in weekly chart, the ancient art of Fibonacci Retracement. You can see how market consciously/subconsciously meeting and settle down on those imaginary line. Thereby, it is important to watch those line when you trade. As it down more, there will be more value investing stocks for us to park your money there. There will be a limit those good value stock price will go further down.
No comments:
Post a Comment