9:30 PM
Admin
Market
Forecast for week ahead:
- From last 2 weeks STI shrinks its previous 4 weeks gain which is really a weak sign. STI fell below its 78.6% Retracement level this week.
- STI formed a candlestick pattern called “Bearish Three Outside Down” After an established uptrend a clear bearish Engulfing pattern occurs one green candle and a second bear move that drives price below the prior day low and closes near the bottom of the range.
- The third day is a red day with an even lower close than the second day. In a market characterized by uptrend, day-twos red candle close completely below day-one, engulfing it completely. The first two days are a classic pattern that suggests a sell-off has taken over the market and is breaking the established trend. This bearish reversal is confirmed by a still lower day on day-three.
- STI still looks sideways to downwards because STI trading below 78.6% retracement level which is higher for any index at this point we expect some sideways to downwards.
STI
Resistance:
- STI having Resistance @ 3360 and above this level it may take resistance from 3405-3440 levels.
STI
Support:
- STI having nearest support @ 3280 below this 3250-3220 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 54.786 and CCI also
turning from high level to 48.04.
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