STI Update

STI update

Lets do a quick analysis on the weekly chart for STI

STI weekly W2Jan17

For those who trades by patterns, an inverse H&S formation seemingly has already been formed. The neckline(yellow line) has been back tested on many occasions and well supported before the recent run up.
Blue arrow marks the profit target for this inverse H&S pattern and coincides nicely with another resistance region.

Currently STI is entering into the first resistance zone between 3020~3091 region. I expect prices to do the following before going up to challenge the second resistance zone.

1. Consolidate around the price region (3020~3091) or
2. Retrace and backtest the resistance turned support region (green area).

In view of this analysis, the focus will be on the blues as these will move in tandem with STI.

Always remember to trade with a plan and stick to it.  Capital preservation is important. Trade Safe and May the Odds be ever in our favour