12 Aug 2010
Recently, many investors are dumping their shares after the announcement made by FED - concern on their upcoming economic situation.
This created fears around the world and market is going more and more bearish.
Looking at the technical perspective, all indicators are diving which shows that market is in bearish sentiment now.
However, STI is trading near it's support level and we may see a technical rebound after a deep dive where investors may starts to pick up good stocks.
Currently there are 2 supports, one at 2926 which was today's closing price and another at 2891 which looks more convincing with fibo 38% support.
Conclusion:
If STI rebounded off from the support, market may turn into sideway trend or may resume its uptrend if resistance breakout.
If the strong support breaks at 2891, market may turn into downtrend and we may see further downside.
In this situation, we should stay away from the long side until a clearer direction is established.
Post a Comment