update on STI

Hi there. The market is getting pretty volatile, so i thought that i should take a step back and have a look at the longer term trend of the STI.

Above is a weekly candlestick chart of the STI with the Fibonacci retracements drawn in. The STI has been on a steady uptrend since it cut the moving average line sometime in late March 2009; and the STI is still on an uptrend. It only crossed briefly below its moving average line in late January 2010. It crossed back above its moving average in mid Mar 2010.

The STI broke through the 50% Fibonnacci sometime in Oct 2009 and has been trading above it since. It managed to break through the 61.8% (2977) last week, but it has fallen back down slightly. As i write this, the STI is slightly above the 2977 mark, but i guess the STI needs to break the psychological 3000 mark for people to turn bullish.

I would say the uptrend in the STI is still intact and would recommend to buy STI blue chip companies on dips.