STI 15 Feb 13 (weekly chart)

STI_15Feb13

Bullish STI has climbed up far but there was not much movement on 14 and 15 Feb 13. Taking a look at the weekly chart,  it is reaching the upper channel line (blue) and there are some resistances (red line) present. Immediately resistance is 3,317 and next will be 3,356.These are strong resistances and I would expect STI to have some reaction/ profit-taking at these levels. If STI is able to break free of this channel, then we are looking at 3,400.

3,530 level, derived from the weekly chart and is definately the strongest resistance in the near term. I don’t foresee it reaching so soon without and retracement. Watch out for reversal signals at these levels.

Immediately support is around 3,160. Always remember, enter at support and exit at resistance.

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