Look at how beautiful the true supports are. The STI had shown reaction near 3,160 and 3,060 respectively. No confirmation of a reversal until a higher low has been form. The supports were forecasted in my blog 2 weeks ago. =) Cheers !
Classic case of false breakdown. Traders who short were caught off guard. Always short at resistance. By the way, it is still down trend, do not long !
STI has broken the strong support with a big gap down and high volume, closing at 3,202 on Friday 31 July 15. The sell down was really fast and furious although on that day, Hang Seng and Shen Zhen composite Index were fairly stable. It was revealed that the hugh sell down was led by Noble, which was given a warning by SGX. Looking at the volume and magnitude of the sell down, I would expect the down trend to continue for quite a while more and in view of the coming National Day week, it will be worsen when approaching the public holidays.
The next 2 support zones are in the regions of 3,160 – 3,130 and 3,060 – 3,030. We shall see how STI reacts near these regions before making any trading decisions. If you have taken profit / cut losses, do stay in the side line.