STI Index Direction

Where is our STI Index heading?

As you can see from the chart, STI is now touching the classical support at 2720.  

Will 2720 be able to hold?  Let's analyze:

1. The volume on the last day closing indicated that there are fear in the market and the sell down is escalating as the volume is above the 20D VMA.
2. The closing on Fri 19-Aug on US market is weak, as it is down by 1%.
3. There are no corporate news as the reporting period is almost over.

With the current analysis above, it is possible for another week of sell down. Let's watch and see.

DISCLAIMER The ideas expressed in this blog should not be used to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.