As discussed, STI has rebounded. However, no matter how I draw and adjust the downtrend channel, it is still near the upper range of the channel. It is unclear if this gapped up candle will indicate a higher rally strength in favour of the bulls in days to come. Nonetheless, I think it is only correct to say that this is a good time to sell some shares when profits are available. Once with the available free cash, more opportunities are available should the price were to come lower over the next few days.
As inferred from my above statement, I am in favour of exiting some profitable positions. This is because:
1. It is still within the downtrending channel.
2, Unclear outcome from US-China trade discussion. Any trade disagreements will send price tumbling down, which is a chance for entry again.
3. Still early to tell because the day candle is not completed. In other words, it is necessary to see how STI ends today. Is it a solid candle? or a harami cross?
Of course, I am not stating that today is a 'MUST SELL'. There is also a chance that all the good and positive trade war developments to come in and the market will recover from here. So should that happen, sell later equates to higher profits. After all, there are higher lows as mentioned in my previous email.
Lastly please understand that I am stating and addressing the possibilities. This helps to manage money better.
