I was meddling with fibo retracements on STI charts and discovered something very interesting..Everyone is expecting Sept to be bad..Is it that bad? This observation is purely based on the previous bottom and recovery. Towards a longer term view.
Taking the 0% at bottom and 100% from previous high...you will notice...
1. Months when STI approaching 38.2% line will hold there considering it as a major resistance..before moving on in all 3 occassions.
2. Except for the 1st time, the other 2 times, STI hold back slightly at the 50% line..which was what is happening to this month
After that seems like a smooth road to 100% STI so we are looking at 3XXX again by next year considering the steeper gradient we have now..
Fascinating fibo retracement indicator...but please note this is solely based on historical and my observation for you guys to ponder. How long we will hold at this 50% line may be 1 -3 months...
Currently, STI is already downtrending.
daily - uptrending from today
weekly - downtrending since 3 weeks ago
Monthly- shows peak in July...
Although things may look bearish in the short term, We still have last week of August to monitor if STI will be able to do a reversal in the weekly charts and a continuation of uptrend in the monthly...2700 is the key to note and have to be close above in monthly inorder for sti to continue moving upwards.
A retracement from this resistance is equally possible.
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