As mentioned 2 weeks ago, STI had break out from its mid term resistance in early March 2016 and strong buying interest is seen from the market.
Lets visit the current STI charts and review to see if it is going in the same direction that we are expecting it to go.
- True enough, 1 small pull back had happened (Good entry @ 312 level – congrats to those whom have entered)
- STI break away the 2nd slanting down resistance line which shows the bullish nature of the market
- Although there is a short term impulsive rally, we need to be careful of the strong horizontal line of resistance @ 347
- RSI of STI is at overbought region again, another pull back would be expected
- The downside from Fundamental Analysis would come into play very soon. Hint: Oil had crashed from a high of > US 100 in mid 2014 to a low of US 30 in Feb 2016. It is about time where O&G/Energy related companies with weaker balance sheet to throw the “White Towel”
Market news are “noises” that would sway reader’s view from one way to another and end up confusing the readers. In order to be successful, one has to be sharp enough to differentiate good and bad news. Staying focus and follow what works over and over again diligently would generate consistent results.
Disclaimer: Posts are solely for learning purposes, please perform your own due diligence.