Continued from STI Analysis -- the next peak and trough ? (65)
STI-N
STI-N
Still unable to conclude whether STI is in the Primary wave 4 of the Cycle wave (C) of SuperCycle wave ((2)) (the blue label) or the Intermediate wave ((iv)) of Primary wave 3 of Cycle wave (C) of SuperCycle wave ((2)) (the red label). However, based on the time frame and performance so far, within a week or 2 STI should be able to differentiate which case is it.
Red Case
The Minor (c) is half way there. For this case to be valid, STI must break below 2208.42.
Blue Case
The Intermediate ((a)) of Primary wave 4 has completed at 2671.58 on 17th Apr 2020. For this case, STI is in Intermdiate ((b)). A zigzag pattern in the Minor degree could be developing soon. For this case, STI unless doing a Expanded Flat pattern for the wave ((b)) else should not break below 2208.42. Though it is possible in general for a B-wave in the wave 2 or 4 to do an Expanded Flat but so far it has rarely appeared. Thus, the possibility is low meaning breaking below 2208.42 is low. If it really does an Expanded Flat, the maximum it could retract is 138.2% Fibonacci ratio of A-wave and that will send STI to 2027. Anything lower than that is considered invalid. After the Intermediate ((b)) it will be the Intermediate ((c)). Intermediate wave ((c)) if not doing a triangle pattern will move higher up. The possibility of breaking about 2955.68 is possible as this is the criteria for a diagonal 5-wave pattern.
After STI rebound from 2208.48 to above 2600 level, some already questioned and even believed the bottom has reached at 2208.48. Thus, if a diagonal 5-wave is formed meaning moving above 2955.68, these people very likely will go chasing up the market and in the end get caught in the Primary wave 5 down.
With Singapore being current at lockdown status with people working from home, share punting activity has increased. Thus, what you see might not be the true picture of the STI performance.
Patience is very much needed to wait for the SuperCycle wave ((2)) correction to run its full course. You can't just continue buying as some suggested without knowing what actually will happen.
