STI forecast

The Straits Times Index went south today and things are looking bearish. The closing today broke the support trendline which was drawn from the beginning of this rally in Aug and the resistance trendline which was drawn connecting the prior resistance levels. Volume-wise, it looks bearish since the volume is relatively heavy. All the 3 technical indicators that i used has trendlines which were broken. Furthemore, the MACD line cross over the signal line and this is bearish.

Straits Times Index :


On a personal note, i visited the channelnewsasia forum and i saw quite a lot of threads on the loss that people had due to the drop in STI today. Some even lost their life savings. And we are not even talking about a few weeks drop but just a drop in a single day so i reckon it is important to have a stop loss and protect ur capital. The more savvy traders had their profits built up from the beginning of this bull run already so when STI drops today, they liquidate their positions and still had profits overall.

Now i tink it will be good to just monitor where STI will land next in the subsequent closings and buy near the beginning of the next bull run. Not that sure if the drop will continue on tomolo. I will be observing which counters was resillent to STI's drop today.

On a side note, CourageMa really chiong up all the way up today. I missed buying it due to fear of buying high which is a wrong mentality. For breakouts, i must always buy high and sell higher but the the fear in me is that i may be buying at too high a price even though the charts are technically bullish. I guess i must change this mindset of mine if i am to trade on breakouts.