For this week's update of the STI, i decided to display a line chart instead of a candle chart in order not to clutter up the chart and to show you what is happening now and is likely to happen in the near future.
Just to recap, STI fell from its peak of about 3900 in Oct 07 to around 1600 in Oct 08. It then traded in a parallel consolidation pattern before making a new intraday low of 1454 in Mar 09. After that, it managed to break through the upper band of the consolidation trading range of 1850 and finally through a major resistance of 1960. From this point onwards, there are very little major resistance levels. I drew one at 2245 because there was a bit of consolidation around that level in early Oct08. The next major resistance level that i see is at 2745 (based on the major low in Mar 08). So based on what i see on the weekly STI chart, the mid-term trend is up and i think one should trade on the adage 'the trend is your friend'.
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