Straits Times Index (STI) Update: SHORT TERM PULLBACK
The Index touched 3,055 zone which we discussed on our last posting and reversed during today's trading session.
Where is STI trading from here? My Bias for STI is to pullback from here towards 2,980-3,000 zone with a corrective a-b-c corrective sequence after completing the 5-wave impulse sequence started 27 Dec 2016.
Alternative direction will see STI moves sideway within 3,000–3,060 zone. STI continues to trade in a upward momentum in view we did not experience any violations of the uptrend channel and MACD continues to trade above zero.
Personal view, current correction will provide investors to add leading stocks for mid-term holding or Swing Trade opportunities. Sectors to consider are Real Estate and Financial Sectors. The specific stocks were shared in my Weekly Outlook this morning.