19 June 2010
STI has rallied for the past 2 weeks creating a higher high, higher low which seems to resume back to its uptrend movement. Many stocks has also rallied and even broke its resistance level.
If you have not long for the past 2 weeks, it's ok. We may have another chance to wait for the price to pull back to its support level (20ma, higher high or higher low) then go for long.
On Friday, STI closes with bearish engulfing candlestick pattern. However, the volume was low which means that there could be a possibility that the candlestick pattern can be neglected or maybe it's due to world cup?
My view for next week:
STI may show some weakness as indicator like MACD is showing sign of bearish (4G1r) - change of momentum. RSI and Stochastic are also in their overbought regions heading downwards.
Thus, I would expect retracement for next week. Support level to look out for:
1) 2806
2) 2762 (confluence with 20MA currently)
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