Something interesting I've read on Friday from one of the investment research houses..
The STI rebounded in line with the strong wall street overnight. The index could remain volatile in the near term as indicators have turned short term negative. There could still be a chance for the index to head on higher to retest the 2,947 highs and possibly even the 3,000 levels but it has to stay above the support trend line at 2,872. The effects of the bearish island reversal pattern are still intact as long as the 2,947 high is not taken out. Traders should remain cautious at current levels as a break below 2,872 would likely confirm that a longer term reversal is underway with the next target at 2,826-2,832, the breakaway gap. 2,806 is the following support.
Expect the market to correct further in the upcoming week. Managed to buy in Keppel last Thursday. Possible contra option on Monday should it hit $8.60.
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