STI Direction: Still flirting with the 2700 level..... where to?

Today we have see STI rebounded to 2721 then weakness again….. now at 2704…. Let’s see…

Sent: Monday, January 11, 2016 10:13 AM
Subject: ************** STI Direction: Back to key 2700 level after recent sell down.... STI 2698

STI has traded back to the 2700 psychological support level already after gradually moving lower since November and breaking below the 2800 support on China market sell down last week. This 2700 level was supported strongly in June 2012, more than 3 years ago before we saw a strong rally upwards. We can start to see some support from here where we can expect some bargain hunting for blue chips and banks given the recent sell down. Sti would find a resistance around the 2760 for now if it does stage a much awaited technical rebound. However, with more weakness seen in China markets, with the 2700 not holding, we can see it trade lower towards 2650 , 2600 then 2500 eventually which are the 4 year lows. Trend in the mid to long term is pointing down but we can still expect technical rebound from key support along the way where short covering occurs.