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| STI Weekly Chart |
Market
Forecast for week ahead:
- STI continues trading in uptrend since 5 weeks, but last week it shrinks more than 1.5% from its all time high and closed previous 2 weeks lower level.
- As we previously mention that STI trading well above its 78.6% retracement level i.e. 3373.23 marks, but in this week STI took support near to this level @ 3382.82 mark so for coming days 3373.23 mark will act as a major support area on the other side above this level next milestone comes @ 3908 mark which is far away from current level. Between this we can see long consolidation phrase as well.
- STI formed a candlestick pattern called “Black Engulfing” is characterized by a large black body engulfing a preceding smaller white body, which appears during an uptrend. The black body does not necessarily engulf the shadows of the white body but totally engulfs the body itself. This is an important top reversal signal.
- While the market is characterized by a definite uptrend, lower volume of buying is observed with the occurrence of a white body on the first day. The next day, the market opens at new highs. It looks as if there’s going to be more bullish trading, however the uptrend loses momentum and the bears take the lead during the day. The selling pressure overcomes buying and finally the market closes below the open of the previous day. The uptrend is damaged.
STI
Resistance:
- STI having Resistance @ 3440 and above this level it may take resistance from 3470-3500 levels.
STI
Support:
- STI having nearest support @ 3360 below this 3320-3290 will be the support area for market.
Technical
Indicators:
Technical
indicators are giving Bearish impression, MACD give its bearish
crossover, RSI trading return from 77.56 level to 66.76and CCI also
turning from high level to 156.91.
| Support 1 | Support 2 | Support 3 | Resistance 1 | Resistance 2 | Resistance 3 |
| 3360 | 3320 | 3290 | 3440 | 3470 | 3500 |
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