FTSE STI closed 3,289.24 on 10th Nov 2010.
Technically, STI still ranging within the uptrend channel which it has established since hitting low at 2,648 on 25th May 2010. The upper boundary of the uptrend channel at the moment is at 3,310 while the lower boundary support is around the 3,220 region.
Long term wise, STI has established an uptrend as indicated by the long-term GMMA lines which is in expand mode and trending up.
Short-term wise, STI is trading at the upper boundary of the uptrend channel at the moment and with RSI 14d and Stochastic 14d short-term indicators showing toppish in sign, STI could be trending down towards the support at around 3,220 before rebound and do another higher high that is breaking the recent high of 3,313.
With earning season coming to an end this week, market is now focusing on the global economic data and events that provide much direction. As a whole, there isn't much catalysts except the excessive cash resulting from US Fed printing more monies that could trigger another strong rally for STI. Market might be in consolidating mode as fund managers adjusting their portfolio after earning season for the possible year end rally.
Long term investors could take opportunity of pull back to slowly accumulate.
Short term investors/traders could use the uptrend channel boundaries to take position.
