The STI index made a false breakup above 3,260 for several days and came back to below the resistance of 3,260. The candlestick pattern for those candles above 3,260 is not sustainable and their bullish nature was short lived. This was anticipated in the last posting 2 weeks ago.
As at 29 Apr 2014, the STI closed at 3,237 with RSI making a failure swing and MSCD crossing down below the signal line. The next support is at 3,200. Let’s see how the index react at 3,200. When it gets supported and the indicators are wearing off, signifying supported retracement, look for a high probability setup for entry.
photo credit: Eustaquio Santimano via photopin cc