Continued from STI Analysis -- the next peak and trough ? (64)
STI-N
Since rebound from 2208.42 on 23rd Mar 2020, STI has staged a zigzag shape on the rebound. As shown in the above chart, this zigzag pattern is definitely the Minor degree given the time frame it needs to develop (in term of week). The question of whether this rebound is Intermediate wave ((iv)) of Primary wave 3 or Primary wave 4 at the moment still remain possible for both cases. However, within the next few weeks it should be clearer. Should it be Intermediate wave ((iv)), the pull back next will break below 2208.42. On the other hand, should the pull back able to stay above 2208.42, that should be the Intermediate wave ((b)) of Primary wave 4. The later case would be the best outcome despite both still pointing towards the bottom of this crisis still yet to come.
This is the period where people could be thinking the bottom has already happened at 2208.42 and the rebound is the recovery and then start chasing the market.
The fact that the current Covid-19 crisis still unsure when will it be contained globally and the true hard data of how economy has been hit by it still remain uncertain. A global recession is on the card but how deep can it be still yet to be known. Thus, there is no way the market has bottom.
When market is on a bull run, one has to be patience to wait for correction, crisis and crash. Similarly, when market is on correction and crash, one also need to patience to wait for it to run its full course.
STI-N
Since rebound from 2208.42 on 23rd Mar 2020, STI has staged a zigzag shape on the rebound. As shown in the above chart, this zigzag pattern is definitely the Minor degree given the time frame it needs to develop (in term of week). The question of whether this rebound is Intermediate wave ((iv)) of Primary wave 3 or Primary wave 4 at the moment still remain possible for both cases. However, within the next few weeks it should be clearer. Should it be Intermediate wave ((iv)), the pull back next will break below 2208.42. On the other hand, should the pull back able to stay above 2208.42, that should be the Intermediate wave ((b)) of Primary wave 4. The later case would be the best outcome despite both still pointing towards the bottom of this crisis still yet to come.
This is the period where people could be thinking the bottom has already happened at 2208.42 and the rebound is the recovery and then start chasing the market.
The fact that the current Covid-19 crisis still unsure when will it be contained globally and the true hard data of how economy has been hit by it still remain uncertain. A global recession is on the card but how deep can it be still yet to be known. Thus, there is no way the market has bottom.
When market is on a bull run, one has to be patience to wait for correction, crisis and crash. Similarly, when market is on correction and crash, one also need to patience to wait for it to run its full course.
