On 8th August 2011, STI has broken down the crucial 2920 support level, which has held in 2 occasions (in August 2010 and March 2011). Thus, STI is now in a DOWNTREND.
Immediate support looks to be at around 2680 to 2720, which was tested 3 times on 11th Aug (2720), 22nd Aug (2680) and 14th Sept (2704).
STI looks to be resisted at around 2800 level in the near term, and to negate the downtrend, STI would need to clear above the previously broken down level of 2920.
Market seems to be in a prolonged consolidation mode amidst the uncertainty over the European debt crisis. 20MA is flat after a strong selloff last month, but the 50MA, 100MA and 200MA are all still trending down.
Short term: Neutral
Mid term: Bearish
Long term: Bearish
Chances of a base forming and reversal to uptrend above 2920: 10%
Chances of a breakdown to continue the downtrend to below 2700: 90%
DISCLAIMER: The opinions expressed in this blog are purely my own analysis of the market, and should not be taken as a purchase or sell advice. I am not responsible for any profits or losses should you act on my views.
Tuesday, September 20, 2011
STI update 20/09/2011
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