above is a daily chart of the STI. The STI has had a strong run up since Nov 2012, peaking at 3320 on 4 Feb 2013. However, after that, the STI has not been able to test that level again. The runup now looks tired, and we can see that the MACD peaked sometime in early Jan 2013 and made a lower high when the STI made a new high. This is bearish divergence and my guess is that the STI will come under selling pressure every time it attempts to rally. The 21-day moving average provided some support during the last correction and it looks like the STI will test that support around 3250-3260 if the STI consolidates further.
Major trend is still up, but it looks like the STI needs to shed some points before buyers come in again.
Monday, February 18, 2013
STI - momentum is on a downtrend
above is a daily chart of the STI. The STI has had a strong run up since Nov 2012, peaking at 3320 on 4 Feb 2013. However, after that, the STI has not been able to test that level again. The runup now looks tired, and we can see that the MACD peaked sometime in early Jan 2013 and made a lower high when the STI made a new high. This is bearish divergence and my guess is that the STI will come under selling pressure every time it attempts to rally. The 21-day moving average provided some support during the last correction and it looks like the STI will test that support around 3250-3260 if the STI consolidates further.
Major trend is still up, but it looks like the STI needs to shed some points before buyers come in again.
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