Friday, April 17, 2009

Where STI Bear Market Rally Heading?

Daryl Guppy wrote an analysis on STI on April 15, 2009.

Key points to note:

  1. STI within a trading band, a pattern of rally and retreat behaviour.

  2. The same is observed in the Hang Seng Index.

  3. Lower band near 1460 is support level, not well tested, act as rebound point.

  4. Upper band near 1940. Successful breakout sets upside target near 2400. Probability of breakout near term is low.

  5. Middle area of trading band is near 1750, act as support.

  6. If 1750 holds, the rally and retreat behaviour will remain in the upper half of trading band. Probability is high.

  7. Failure to hold confines the rally and retreat behaviour to the lower half of trading band. This extends the duration of the consolidation period.

Do you notice a possible Rounding Top Pattern forming in STI?

Read Where DOW & S&P500 Bear Market Rally Heading?

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