August 29, 2007
STI update - Part III
I written about a month or so ago that I expect STI, after breaking the uptrend line, to trade higher to "kiss" the trend line before it fall. The market play out exactly to my script. Than I mentioned in part II that I expect the STI to find support only around 3000-3200 level. The market hit around 2960 level and rebounded.
So the question is where it is heading to now. I expect STI to trade in a range first. It will eventualy trade lower to retest the low of around 2960 or exceed it by a little to around 2800. There is where I think STI will botom out. Of course, whether it will reach there or not is anyone guess, but if STI ever goes to around those level, I think it is a good time to enter the market.