Technical Analysis of STI:
Friday's Close on STI was spectacular. The 2970s was tested again with the lower end reaching for the intermediate support and rebounding, closing all the way above 3000. The next level to test is 3014. To maintain on this uptrend, STI cannot close below 3000. No signs of fatigue yet, i believe STI should be able to test 3014 before the next correction. Someone mentioned that STI formed an inverted head and shoulders from May to July, with the neckline being around 2900. Notice how STI reacted when it challenged 3014, with it reversing around 360 points to the low in May. The second try in August resulted in another correction but it was only about 100 points. A new bull market could be coming, especially if we witness the first close above the 3014 level. I believe one should start building long positions and await the next run up.
- P-T Trader
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