STI Direction: Rebounding from support at 3055. Opportunity to accumulate in dips

Sti back at 3090 today, can we see another retracement back to 3050?

Sent: Thursday, August 13, 2015 12:29 PM
Subject: ******* STI Direction: Rebounding from support at 3055. Opportunity to accumulate on dips

STI has gapped down and broken below the 3150 critical support furiously yesterday on news of China Currency devaluation the day before. Support would be at 3055 now which was the low for yesterday and also the support seen in March last year before it rebound back up. Note that any further break down below the 3050 level can see it trade towards the KEY 3000 Psychological support level where we can expect some bargain hunting again from there. Immediate resistance would be at 3100 for now and there can still be more weakness below this. Those looking to accumulate blue chips on dips can consider near the key support levels like 3055 then 3000. Be nimble as market might still experience downside volatility from the China’s currency devaluation measure.