Continued from STI Analysis — the next peak and trough ? (42)
In previous analysis it was mentioned STI fell into 2 scenarios — M1 at 3250.27 and M2 at 3286.08. The break above 3228.38 on 1st Apr 2019 has invalidated the M1 at 3250.27 scenario as it doesn’t fit into any Elliott wave correction pattern. Thus, STI now left with the scenario of M1 at 3286.08.
The above chart illustrates the invalidation for the scenario of M1 at 3250.27. Though now M1 is at 3286.08 but whether M2 has completed at 3156.79 on 25th Mar 2019 is still too early to tell. Despite the intra-day high of 3283.01 today, the present upward movement could be still wave B of the correction pattern with wave A at 3156.79. Wave B, depending on the pattern of the correction, could rise to as high as 138.2% Fibonacci ratio of wave A and in this