Monday, August 6, 2007

I tink i saw a hole rather den a gap

Today STI gapped down almost 100 points today landing at around 3300. Well, like what i posted in my previous few posts, STI landed at around 3300 but i got 2 of my technical indicators wrong. It landed at 3300 due to a fibbonacci retracement of 50% and most importantly, 3300 was a previous important resistance level in around late Feb. Guess i still got some stuff to learn and i really got to be more observant.

I am really very surprised that STI broke the supporting trendline that was formed 1.5 years ago so effortlessly. Din see STI trying to form a support on the trendline at all. Guess i am expecting STI to hold at around 3300 and it will attempt to fill the gap over the next few days. Gota see how STI will test this important trendline and how it will fill the gap. Otherwise, down and down is the only way for STI to go. Anyway, i realise in a bear market, the trend will just go down very fast in a very steep manner. Maybe this is wat is happening now. If it goes down, STI will likely find support near 3220 at the 200d MA with a 61.8% of Fibbonacci retracement.

Btw, all 3 banks and that is , DBS, UOB and OCBC all made it into the top volume list today. Getting more and more bearish. :-/

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