It’s finally the weekends and I can finally update myself on the market movements! So while in camp I heard about how STI breached 3500 and I was honestly taken by surprise. I didn’t expect 3461 to be breached so soon without first re-testing the support line.
Looking at the chart..Going forward, we’re look at 3650 to be tested next where the new resistance is at. We’re approaching the 07-08 high of 3900. It will definitely be a major resistance point because that was the previous tipping point before it crashed through to the lows in 08-09.
Review of STI Outlook: 15 Feb 2015
So it turns out I was right about STI having to come down to take a breather, “supported by some signs of divergences and weakness by the technical indicators in the daily chart.” I however did not anticipate the move to be so short-lived and break the resistance so soon instead.
If you look at the latest price movement, you would observe a bearish engulfing candlestick, confirmed by Friday’s lower closing. Perhaps it needs to catch a breather once again(?). There are so many levels it could possibly go to: 3460, 3370, even 3300! We’ll just keep watch for now. I don’t think it has enough strength to go to 3650 yet, but I wouldn’t rule out that possibility!
Look back to some calls I made:
Super Group: Has Super Group Lost Its Super Powers?
“Price levels to watch out for
1.25: Watch for strong breakout at 1.25 for potential trend reversal
1.03: Failure to be supported at 1.03 indicates continuation of downtrend with next support at 0.995″
A wasted opportunity for me not being around to take advantage of it if I were trading for capital gain. Turns out 1.25 was broken and now we’re well into the 1.50 range. Support was never breached but resistance was broken.
Cosco: Trade Of The Week
Turns out I almost got it right except that it would have hit my stop-loss of 0.495 by going to the low of 0.465 first before reaching where we are now, 0.58. Looking at it, I would dish out another call here.
I won’t be trading because I can’t watch the trade but I’ll take this as a practice!