Oct 14, TA for STI

Oct 14, TA for STI

• Trend - Down (but index finally trade above 20D MA)
• Momentum - Stochastic signal shows near overbought and RSI shows moderate slight upward. 
• Candle - Shooting Star. The past 3 candles had been unsuccessfully to bring down the index. 
• Volume - Average on 50D MA, but 14D MA is edging up showing some buying momentum. Signal doesn't look like "dead cat bounding". 
• Pattern - Index is at the top of the downward slop. 

STI 2700 is an important Fibonacci support, once it goes below it - indicate that index will fall further down and if it is above - indicate that index gains support and trading above this resistance 2700 which is now a support.  The long the candle is above 2700 and above 20D MA, shorting might not be a good momentum, as a new higher LOW is forming. As long as index is within this 2700, the direction will not be that easy to trade.