Wed, June 20, 2018
This morning STI opened below the 3300 mark from yesterday. This results in a gap between yesterday's and today's session. Also as guessed in my previous email, it was hovering over the range of 3320 forming a temp base before moving down. It is almost similar to my yellow markings on yesterday's chart, but it seems that it is falling so much faster this morning.
1. Assuming if STI did not recover and cover back the gap of back to 3300 and above by the end of today, may continue to fall over the next few days. And rest at 3250, hopefully. Not to mention, there is a need to monitor news and fundamental developments over the weekends as well.
2. Why 3250? To me this is a psychological mark, which is also the low during Oct 2017. At the same time, the public and long-term investors may come into the queue for strategic prices given that it is almost 1 year low. As a result, it may hover around that range as short positions will start to unwind and cover back.
3. Now making another assumption here that trade war was to persist and worsen, UK still not able to get a good Brexit deal, and etc, it may move down past 3250 mark and the level at STI 3200 may be tested. Though there will be a short rebound after which too as the technicals are too oversold.
4. But if all the negative news as mentioned above are reduced/mitigated with new positive developments, STI should recover and attempt to breach/touch 3340 mark. This is the highest point based on the market this week.
A few assumptions made, nothing concrete, but it helps to crystallize my thoughts, sharing with everyone at the same time. my 2 cents here. Feel free to email me to discuss.
