STI broke traingle, boxing and 3120

As I mentioned before, once STI broke 3120, the reversed head and shoulder will be no longer valid. 

Last Friday, STI broke 3120.  Not only that, it broke the boxing, closed at 3114 and with all day low at 3098.  Let’s re-analyse the whole STI trending.

Let see the 3 decline lines that I drew.  Base on charting, STI is on the down trend.  Having said that, 8 weeks and first time we see a white hammer appeared between the 2 support lines (3120 and the middle decline line).  STI could have a retracement.  And how far can it goes? 

STI has lots of resistant levels – 3200, 3230, 3250, 3280 and now with another decline line that also serve as a resistant for STI.

Support level – the middle decline line, 3050, 3000 and the bottom decline line. 

Base on trading and investment psychology, those resistant points that I mentioned above, do not take it lightly.  Window dressing, the white hammer and recent Christmas rally, hopefully could give a push to STI.   In order for the STI to really turn bull, it needs to break 3300.

US market, I mentioned that many times, as long as tapering date is not fix, the roller coaster ride will always be there.  Remember the 10 years Treasury Yield?  Today, it is standing at 2.86 %.  Watch closely on this.  The US is selling $64B of notes and bonds next week, and FED policy maker will be meet on December 17 and 18.  Index Future is going to slow down soon.  There we come the end of 2013. 

2014, there are many things to watch out for.  As someone that I highly respect 胡立阳老师 said "小心，小心再小心".  Keep reminding myself, the market today is mend for trade.  Whether is gold, property…..or the equity market, next year 小心，小心再小心.