STI 27 Jan 2014

This is the STI chart updated as of 24 Jan 2014. It has been consolidating sideways for 2 weeks or so, trading within the range of 3120 and 3150 thereabout. It has to break out of this range as the longer it remains within a tight range, the more unstable it will become. And thus, it decide to break out of this tight range on the downside on 23 Jan, with slightly increased volume. Great! This was what I had been waiting for. Shared with the mentoring audience that I was shorting the blue chips, while selectively longing the strong stocks. Looks like no CNY rally for this year.

Attached below is the STI chart for 27 Jan 2014.

Gap down. Touch the pivot low support @ 3025, and then bounced off. Closed as a hammer bar, which is the only positive thing. With 3 days of selling down, with increased volume, and the gaps, the STI is injured. Energy is stored on the downside. I'm not too sure whether we will have a reasonable bounce/ throwback from here as CNY is in 3 days time. Nonetheless, any bounce is an opportunity to short the stocks. Just need to be mindful of the support @ 2990/ psychological 3000 level. Otherwise, the next strong support is @ 2930 region. We'll see.