This is the strength and ferocity of the inbound trend of STI since it hit a low on the first day of February. Will the red downward trendline resistance be enough to contain it? Actually if it breaks the red line resistance, it will be kind of hard for me to trade as all my current analysis would be invalidated. I am prepared to short the index stocks at the resistance. If it pierce through, I guess I would not trade for some time and just bid my time to short again.
Am I too stubborn and like to stick to my views? Maybe.
The way I see it, even if the STI manages to pierce the red downward trendline, it will meet a lot of overhead resistance if it were to continue to move up. Taking that route will be more choppy to me. It will mean more whip-saws and choppy times in the market.
Anyway, let's continue to monitor. I believe by end of next week, we should have an answer.
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