STI closed 2,901.18 on 4th May 2010 and confirmed the breaking down of the mini head&shoulder formation. Projected downside target for the breakdown is 2,870 but there are couple of events that worth observing.
1. STI breakdown with a low volume
2. The estimated breakdown target is roughly within the support zone 1 of 2,880 - 2,945
3. The long-term GMMA set of lines still expanding in uptrend
4. Though the DI pair is negatively spaced but ADX signal lied below 20 indicating current trend ( down ) lacked the strength
5. With reference to the recent high of 3,037, a 5% and 10% pull back are 2,885 and 2,733 respectively. 5% pull back fell into support zone 1 while 10% pull back fell into support zone 2 ( 2.734 - 2,790 )
Short-term wise, the trend is down but the longer term trend is still up. Signals to monitor at this moment are :-
1. ADX signal moving up towards 40 when the DI pair is negatively spaced and this could signal downtrend gaining strength
2. Compression of the long-term GMMA set of lines
