I was screening some of my stocks and decided to do a write up on the Singapore Straits Time Index. Looking at the whole manipulative operation from the big operators, the short term STI should be expecting a rally. Based on my analysis and experience, this rally should be a weak one. Maybe its due the some short coverings and profit takings or maybe it is due to those fund managers are currently in holiday or maybe it is due to some window dressing to make the index looks nicer. We don't know the real reason, but based on last Friday's closing, i am holding my view that STI is not a time to buy yet. Profits can be made but the risk and reward ratio doesn't justify the risk. There are still overhanging supply above resistance levels and for the market to move higher, more evidence is needed to justify the buying action.
As i mentioned in my earlier posts, i don't use indicators or complicated trendlines. I judge the market based on every bar and the psychology behind it. The 3010-3015 mark is an important level that i will be watching for. It is not any support or resistance level, but the level that will check the buying/selling strength of the big operators. If it ever hits that level, my eyes will be wide open to judge the strength that appears or persistent weakness which will continue to drive the market down.
The current support and resistance level shown on the chart is at 3119 and 3218 respectively. For now, we shall wait for next Monday's action for further verification.
Ronald K
