Hi there! I have not been updating my blog lately as the market has been pretty dull; low volume and generally trading sideways. Today, the market broke above the 2745 major resistance (intraday). (Please see above daily chart). If the STI can close above this level today, it could signal the start of a more sustained rally. Traders could go long on a 'breakout trade'. Cut positions if the STI closes below 2700.
Please see STI's weekly chart for a slightly longer term view. The STI managed to close above the 50% fibonacci retracment level of 2691 last week (good sign) and appears to be breaking out of major resistance of 2745. I think the STI will head towards the next fibonacci level of 2978 (61.8% retracement level) rather rapidly. However, now we are close to the holiday season, in which the market is generally quieter. So it may take some time before the STI reaches the next fibonacci level.
Till the next update - have a good day!
