Trading Ichimoku

Since the gap down from July, STI has hardly recover.

Price range has ‘consolidated’ between range 2528 to 2900

Currently, from the Ichimoku chart, STI is trading below the kumo.

All signs point to a lower STI going into 2012.

1. Trading below kumo with resistance at 2714

2. Both Tenkan sen and Kijun sen pointing down

3. Leading kumo has twisted and the counter trend rally has failed.

Future trend suggest that it is heading downwards.

Critical support levels coming up for STI.

They are 3103, 2972, 2935.

Despite breaking out of the kumo, STI may be hitting resistance soon.

1. Resistance level from Chikou Span is around 3201.65

2. There is a high possibility that it will retrace.with support at 3124 and 3063.

Target timeframe : 2 months for retracement.

Note:

Singapore election is just around the corner. Take care.