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Where is STI and Regional Indices Heading?

Daryl Guppy wrote his analysis on STI yesterday. Key points to note:


  1. A common chart pattern in STI and many Regional markets – failure of breakout from equilateral triangle (see diagram).

  2. Good news: reduction in bearish pressure – probability that market will hit the downside target from the equilateral triangle is reduced.

  3. Bad news: Trendline A now becomes support – this is bullish. But slope of line shows continued bearish pressure. STI can slide down the support line.

  4. Trendline A, when projected forward, intersects a horizontal support line at 1640 in late February - estimated support target and timeframe.

  5. If this support target breaks, then downside target of equilateral triangle remain valid.

  6. This period is dominated by short term rallies and rapid retreats. It remains a traders market.


Read STI in Consolidation – Breaking Up – for downside target of equilateral triangle.



Read My Crystal Ball – Stock Market Forecast 2009 – Yin Earth Ox, in particular Chart Patterns for 1Q2009, for my take on possible direction of STI going forward. Dun forget to lookout for my monthly and weekly forecasts, including daily articles for latest updates.



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