Sept 12, TA for STI,
- Trend - Side
- Momentum - Moderate Flat
- Support - 2714
- Resistance - 2884
- Candlestick - NA
- Volume - Average
STI is into narrow band, with a symmetrical triangle formation. The mini symmetrical triangle is a bullish pattern, however in this high volatility period, any news can trigger a big swing. How to trade? In this trading mode, it is good to watch the symmetrical lower trendline and the most important support line of 2714. If these are broken ( fibonacci retracement support is broken), those levels are monitored by many TA traders. Most likely a major short mode will occur again.
For DJI, the important level to watch is the 10,700 support line. From wave theory standpoint, it should be now trending into Wave B formation. A sure confirmation of this Wave B is when it breaks the 10,700 line. Why? it indicates Wave B formation is completed and Wave C is usually more serious than Wave A - in term of dropping. Theoretically, main Wave C is 2x length of Wave A. In trading, we need to watch for those level.
For Performance Chart - DJI, STI, HSI, S&P vs USD. From charting, USD Index looks like a better bet compared to indices. USD Index is flat but trending near resistance level - 76. At least for USD Index, it is now trending into Side instead of Down and trading above 50D MA and testing 200D MA.
