Last week, Asian and US market rebounded strongly and trading volume has also increased. These may due to the increase of lending to SME in China banks; the reports from US, pending home sales bounced back in Aug and jobless claims fell; and of course, the TA plays apart.
STI has found its strong support at 2920 and currently, it's trading near its immediate resistance. Can STI break through? This is the question where everyone is asking.
Most of the sectors has rebounded off and currently, the finance sector is still hovering at its support level and property sector has just started to move. Finance sector needs to lead the market for the next wave if not, the property sector in order for STI to have higher chance to break the 2 years peak of 3043.
Sector Performance
From this chart, you can see that the banks are lagging behind the active sectors.
Properties are also trying to catch up.
STI
Conclusion:
Investors are turning bullish as bullish sentiment kicks into the global market over the past 6 days which potentially increases the chance for STI to reach a new high. Market also seems to be more volatile than before with the mixed global economics news.
My take is to hold on firm on the current position for a potential breakout. If not, take half profit near the resistance of 3043 and ride the other half. Exit only when a reversal signal is confirmed.
Possible scenario: STI hovers around the resistance level between 3011(gap support) and 3043(immediate resistance) before reaching a new high.
Post a Comment