Since STI rebounded on March 2009 hitting a low of 1,456 till recent peak of 3,313, STI has moved up 127.54% in a duration of 20 months. During these periods, STI did not go up in a one straight line and in fact looking carefully, it broken into 3 channels to move up as indicated from the chart.
Channel 1 started in March 2009 and terminated in September 2009, a duration of 6 months with a +85% rally moving from 1,456 to 2,700.
Channel 2 started in October 2009 and ended in May 2010, a duration of 8 months with a +18% rally moving from 2,570 to 3,040.
Channel 3 started in May 2010 and just completed recently in November 2011, a duration of 6 months with a +25% rally, moving from 2,650 to 3,313.
The recent pull back if by statistic and history, could be starting of another new uptrend, Channel 4, with a possible bottom between 3,040 - 3,120 region ( provided the 3,040 support can hold ). If this new uptrend channel is able to sustain and perform as the previous 3, a duration between 6 to 8 months before it terminates could happen and that will be between May 2011 - July 2011.
To monitor now is the region between 3,040 - 3,120 whereby STI could be forming the low for the new uptrend channel. If using 3,040 as the low and a potential +20% rally, that would bring STI to 3,648 level.
