next support for STI

Good morning, STI closed yesterday at 2706, just shy of psychological round number support of 2700 and the 50% retracement of 2694. This should be a major support. Next support is at 2603. If the STI does break 2700, the correction could be quite severe.

Major correction ?

Just a quick note: Last major support for the STI is 2745. Above chart was taken about one hour ago. If STI closes below this, then it could be the start of a major correct. The next support should be 2700 (round number). I would suggest short term investors to wait till the market finds some support before going in. Longer term investors may start to accumulate blue chip shares.

Where is the STI heading?

Hi there! It has been a long time since my last update. The STI has broken out of the 50% Fibonnaci retracement mark and appears to be stalling at just below the 61.8% (2981) level. The momentum (looking at the MACD) is a bit flat with a slight upward bias. The longer term trend of the STI is still up based on the upward sloping moving average line and the fact that the prices are still above the moving average line.



Above is a daily chart of the STI. The shorter term trend of the STI is still up looking at the slope of the moving average as well as the fact that the price has been staying above the moving average line over the past 2 months.

Based on the chart of the STI, i would recommend that investors go long during market weakness.

Major resistance is 3000 points. Support appears to be 2900.