STI has broken the *Imaginary* 3000 support!
How will it continue from here? Will it rebound or succumb to the selling pressure? Let's take a look at the chart below to find out...
It's ok if you don't really understand charts for the beginners. But you need to know just 3 trends.
1) Ascending 2) Consolidation 3) Descending
If you look carefully, from June to Aug, the STI is going up (Ascending).
Come Aug to Oct, the STI has been in range bound (up and down without a real direction) and we call it Consolidation.
With the breaking of an important psychological support line at 3000, and the "Double Top" Pattern (the blue lines i drawn), it seems that STI will be going down for another 2 months. (because ascending and consolidating both took around 2 months each!)
It will be like the complete pattern of Dec 2011 to June 2012! What do you think? What are the stocks that can be "played"? Comment and join in the discussion :)
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