STI Week Ahead: Watch Out for Continous Sell Down!

STI has broken the 50D MA support today on the daily candle and also broke the 5W EMA support on weekly candle. The index is just sitting on top of 2,720 support. Breaking this support will send STI to 2,600 level. However, STI may start rebounding from this level depends on how US market close on the Friday. If Friday closes with bearish candle, next week will probably have more sell off.


GS – Bullish Abandoned Baby Pattern Failure?

GS formed a Bullish Abandoned Baby (another name is Morning Doji Star) pattern a few days ago but the trend did not reverse to up trend. The trend will normally continue if there is a pattern failure, and the H&S formation remains valid for the time being.  I am watching closely whether GS will break the neckline and the support of $158.4. If these two supports are broken, GS will start a deep correction to about $138 level.