(Updated 25/4/99) Although last week we continued to see STI broke through 1,800 and tried twice at 1,890, it failed to break the psychological 1,900 level. The upmove momentum on the blue chips had somehow tapered down too. This had indicated to us that a correction would probably in the card. If we look at the region, Hang Seng had make a day reversal last Friday, with an initial upsurge of +400 but closed at -28 points. Its hourly chart had also clearly showed a completion of five wave and will be going through a correction this coming week. In addition, Nikkei had been trying to push above 17,000 level last week but failed to achieve. South Korea is now bothering by its labor strike which may affect its Stock Market. Although Dow Jones had not shown any sign of weakness yet, with the regional pointing towards a weak start next week, STI will probably follow suit on technical correction. Expect STI to correct next week towards 1,700-1,760 level before an upmove towards 1,900-2,050. Investors are advised to take profit on any possible rally and stay sideline for the timebeing until STI reaches 1,760 and below. We are now in a cross road again, which in no time we will probably have to decide which is the scenarios presented in our "Long Term Perspective" site is more likely than the others. If market continue to burst upward next week with strong volume and break through 1,950 level at ease, then our current preferred count may be right. Alternatively, if a correction occur next week, than we have to watch for the next upmove to confirm our preferred count. Whatever it is, I think we should probably know the answer by May.
Events To Watch For The Coming Weeks/Months
|
