Market Review and Trends
STI is about to move decisively
By P-T Trader  •  July 31, 2011

In my last posting, i mentioned 3180 as the level that satisfies the condition of a buy on the STI. Indeed, the index has stayed above this level throughout the week, with relatively high volume but the movement has been relatively cautious. I expected a clear breakout once the level was met, as the previous resistance was cleared. Instead, the trading on last Wednesday, Thursday and Friday showed a pause at 3195. Last week's cluster forms a flag which in typical conditions represents a bullish continuation, meaning that a usual upside outbreak is expected. Since a strong upside is the conventional wisdom, i would be cautious if the index trades below 3177 starting from Monday, as that points towards downside. The momentum has slowed and indicators are screaming 'high risk' for long trades, as they have formed the downward cross from overbought region. For traders holding a long position, i ......
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By P-T Trader
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