STI Direction: Unable to stay above 2600... with 2640 still as key resistance...... still weak.....

Back to 2584 now after a slight rebound yesterday….. Let’s see if more selling towards 2530 which is the 2 weeks low…..

Sent: Friday, January 29, 2016 11:21 AM
Subject: ********** STI Direction: Rebounding from KEY SUPPORT level for the whole market..... trend may still be weak below 2600 though... now 2587

Following up from last week STI DIRECTON note, we are still seeing STI unable to cross above the 2600 psychological level. From the daily chart, we still look weak below 2600 – 2640 with moving averages all pointing down firmly. Some pretty good support found for now at 2520 – 2530 which also coincides with the 200 MA LINE for the monthly chart. Note that this was the level that was holding in September 2011 before it rebounded so we are sitting at quite a good support level. May consolidate from 2530 to 2600-2630 for now in wait of clearer direction from other key markets like US and China. A breakdown below the 2500 – 2520 level would further confirm out downtrend in the short to midterm where we may see more selling pressure in all blue chips and banks again. Other than that, still ok, at least for now.