STI has broken its resistance of 3,120 on 6 & 7 Mar 2014. The resistance (3,120) has been well held for the last 11 trading days starting 19 Feb 2014.
Currently, both the RSI and volume is high, but experience losing of strength. MACD is positive but upside strength weakened. The trend is bullish, but considering all factors, it is not a strong entry as compared to the one on 11 Feb 2014, which I have mentioned in my 7 Feb 2014’s posting.
The Index has been on the up trend for the last 22 trading days. I will observe for 1 to 2 more trading days to ensure no false breakout. Traders may wish to enter/ re-enter the trade upon a pullback. As conservative traders, it will be good to take partial profit still, if you have not done so. The immediate support is at 3,065. The next target will be forecast when it is confirmed not a false breakout.
Dow Jones has met with bulls and bears fighting with indecision for the past one week. Resistance level of 14,450 – 14,500 still holds and it has demostrated how nicely the candles stick to the levels verifying the resistance zone which was first predicted on 8 Mar 13 in my earlier postings. The CCI is coming down and MACD has crossed finally (lagging). In view of the tough fight between the bulls and bears, we need to wait for candles that shows distinctly whether it breaks out of resistance zone or retrace below it.
Hang Seng was performing badly. As forcasted last week, it has broken down its previous support and is currently at its next support of 22,185. These two supports were pinpointed accurately. I foresee further downside for HSI in the coming week.
STI is still consolidating sideways and has been so for the past few weeks. It is bounded by resistance of 3,320 and support of 3,230. Bearish divergance still maintained and its direction will only be known when it either breaks the resistance of 3,320 or support of 3,230.