STI Long term index charts are trading at influx point. Caught in the bull and bear fight index is hovering around 3200 mark. See a reverse head and shoulder pattern appearing on the long term charts which may unfold in next few months when the neckline is confirmed breakout. This is a long term chart so view is mid to long term. Since STI index has over 40% weightage of 3 large banks hence any rally should be supported by banks moving higher. Likely trigger may happen when there is pause in FED interest rate hike. Looking for trend playout and see STI index moving to new all time high. With index at 12 PE there is enough steam left.
Comment:
STI Index still holding well with in the support and resistance level. Long term trend still intact and support holding well.
Comment:
The index continues to be in the range bound... the lower level of the index is coming as support and upper level as resistance. Index is getting pressure around 3400 levels and finding it difficult to cross that level. the range of 3200-3600 is getting narrow now. continue to monitor and looking for a breakout in next 3 months. Usually the trigger may be external markets and STI may follow the suit so continue to watch