From a bigger picture dated back to 25th May 2010 when STI hit a bottom of 2,650 and rebound from there on, hitting a peak on 9th Nov 2010 at 3,313, STI appeared to be moving in a triangle formation and yet to breakout or breakdown from it. The apex of this big triangle is at 3,111. Looking at other indicators like RSI and Stochastic from 25th May 2010 till now, the low of RSI and Stochastic on 25th May 2010 was tested a few times and rebound from there creating a strong support of it.
Assuming the triangle formation breakout, projected target could be 3,774. On the other hand, a breakdown will bring STI to 2,448.
The scenario of STI falling to 2,448 is highly impossible at this moment unless another global financial crisis which result in Singapore economy going into recession.
For short-term view, STI might hit the support/boundary of the triangle at 3,018 and rebound from there.
Keep watch on both the upper and lower boundaries of the triangle as STI consolidate itself before a breaking out of the triangle formation.
