STI: Rejoins the channel

The air is buzzing with excitement or it might be panic. It depends on whether we are asset light or asset heavy at this point in time.

On 13 Jan, I blogged:
"The previous uptrend channel resistance for the STI should now provide support at 2,860 through early next week. If the index breaks this support, it would rejoin the channel. Having said this, with the 20dMA, 50dMA and 100dMA all rising and each within 70 points of each other, more or less. The outlook for STI's uptrend is still good. The correction will be a good opportunity to accumulate shares of good companies as prices move closer to supports."

With the STI now just a tad above 2,800 this morning, the index has rejoined the channel. The uptrend is still intact. If the index breaks the uptrend channel support, then, I would worry. For a look at the chart, please refer to: Confirming the signs.

On 15 Jan, I blogged:
"To me, the recent ups and downs of the STI is a sign that a correction is probably going to happen. A 3000 points initial target which so many analysts have talked about is so near and yet so far. The market is grudging and unwilling to give bulls the satisfaction (yet). Analysts have also talked about a 3300 points eventual target for the STI by end 2010. That's a mere 10% from where we are now." Please see: STI: Up or down?

The correction which we have been anticipating has descended upon us. This is an opportunity to accumulate at supports and I am doing just that. Good luck to us all.