First off, we have an updated STI daily chart.
I have drawn a fibonacci retracement from December's low to the "possible" top yesterday (21 Feb 2012). Yesterday's candlestick was almost a doji and today's selldown with volume gives a greater possibility that a retracement is underway. I am about 65% confident that we are at the start of the retracement.
I have identified rebound zones to keep the bull alive. Namely 78.6% @ 2940 and critically 61.8% @ 2869. Breaking these, will suggest that the bull has weaken considerably and 50% may the last hope for a final hurrah. Do note that to reach these levels, 200ma would have to be broken and generally breaking this MA is a signal for long term investors to sell.
Trade with care. I'm currently only have 25% of my capital in the market and have been sitting on cash this past week.
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