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Analysis on STI

STI seems to be oversold in most indicators and some even showing divergence. STI is currently resisted at the march top at 3030. The nearest support will be at 2950. A double top formation might be in the making if 2950 can’t be supported. Currently the trend line is also broken meaning I would be exiting half my position if it happens. But luckily a long lower shadow negates some of the negativity most likely due to the 20DMA.

Some insight I found looking at past data is when RSI, Stochastic, MACD histogram and ADX+/- making a divergence, is a good time to lighten up on position. Esp for ADX+/- as once it makes a divergence the next will be a cross with ADX showing the trend has weakened.

2010Aug-Straits Times-800x600

STI chart

p.s: My previous post on time retracement seems to be working missing out by a day or 2. If STI does move down for a correction. The next important date will be 13-14 Dec. So do take note.

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