STI just broke down; possible target at 2000
The STI daily chart shows technical break via a Gap Down of:
1. A supporting trendline;
2. Out of a bear rally wedge;
3. Failed the 55EMA; and
4. MACD broke down into the bear territory
This appears to be a rather strong conviction of the weakness of the STI and projections indicate 2500 as the next and critical support. Failing which 2200, and consequently 2000.
This follows a previous warning that the STI was about to turn and form a top, which it did.
Note that the STI appears to be inherently weaker than most indices, partly due to its components consisting of mainly financials, with very few technology, and increasing contribution of REITs.
1. A supporting trendline;
2. Out of a bear rally wedge;
3. Failed the 55EMA; and
4. MACD broke down into the bear territory
This appears to be a rather strong conviction of the weakness of the STI and projections indicate 2500 as the next and critical support. Failing which 2200, and consequently 2000.
This follows a previous warning that the STI was about to turn and form a top, which it did.
Note that the STI appears to be inherently weaker than most indices, partly due to its components consisting of mainly financials, with very few technology, and increasing contribution of REITs.
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