STI Review 18 March 2016

STI been trending up thinly it seems. By inferring from the candlestick body length, it’s been trading in a tight daily range. The volume also been decreasing. Usually, we should be seeing increasing volume along with the formation of higher candlestick. This will signal a good uptrend.

Looking at the stochastic signals, we can see that it is also in the overbought region. This can increase the possibility of a pull-back soon. Trending upwards, it will coincide with the 200 days moving average, which is also around 50% fibo level, which might pose as a resistance. Therefore, this 3000 zone is a area we can keep a close watch, to see if STI is able to retest this zone or not.

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