STI Analysis -- the next peak and trough ? (XII)

Continued from STI Analysis -- the next peak and trough ? (XI)

Like mentioned in the last 2 analysis considered correction case closed and today STI breakout of the downtrend channel more or less confirm that.  Another interesting fact is since hitting 3,340 on 4th April 2018 till now, there are 10 trading days and of the 10 trading days, 7 days STI closed positive while the other 3 were in the red.  This exactly fits what I have mentioned in the previous analysis about the 3-2 method, in the period of 5 trading days 3 days up and 2 days down, was the minimum requirement to break the downtrend channel within 1 to 2 week times.

I have adjusted the wave labeling of the correction.  The adjustment was made in the linking wave ((X)), instead of just a pure zigzag in the previous case, it is doing a triangle pattern as shown in the above chart.  Only by doing so then can be accounted for the drop on 4th April 2018.  Should STI stop at 3,383 on 28th March 2018 or after 4th April 2018 there is another new low then the previous analysis was correct in fitting in the pattern.  The drop to 3,340 meaning the down has 1 more wave count doing a 5-wave pattern which is a violation.  However, if there is a new low after 3,340 then after 3,383 the wave pattern is a wave 5 ending diagonal pattern and the overall pattern still consider a 5-wave pattern.  Regardless of whether the linking wave ((X)) is a zigzag or triangle, the end result is still the same that is for this correction a double three combination pattern has developed.

Going forward, STI should experiencing a pull back either after testing January 2018 high of 3,611 or any time soon.  This shall be the Minor degree Wave 2 for the Intermediate degree Wave 5.  That is not the focus for STI analysis now as attention should be paid to STI breaking 2007 high and rise to a level (probably above 4,000 from statistic perspective) high enough so that when Primary degree Wave 4 correction kicks in, the drop will not overlap into the high in April 2015 which is around 3,550.

I supposed that the power of Elliott Wave that is when STI hit a low of 3,340 on 4th April 2018 non-Elliott Wave analysis will consider STI having further downside as other Technical Analysis tools still in bearish view.  For Elliott Wave due to its rigid rules, that drop practically kill all other possible combinations which a correction can develop into.  As such, there is only one outcome going forward for STI -- correction finish.  That is why I have mentioned case close in my previous 2 analysis despite STI yet to breakout from the downtrend channel.  I would not say Elliott Wave enables one to pick the bottom exactly but it enables one to know the direction beforehand (before confirmation).