Passive Income for Life

Both STI and HangSeng are nicely supported. I had half a mind in seeing them break their support because of all the bad news. Seeing DOW so green at this time of posting and nearly all markets so oversold in such a short period of time, I presume that both of this indices will rebound at least in the coming week. To what level, i am not too sure.

For STI, I suppose it would be the midterm downtrend resistance line. Seriously, if this line is strong, I might consider switching back to bonds for a while because i see today’s support might be taken out soon and go as low as the 1,400 region as mentioned in a post sometime back. Then, i mentioned that SSE would most likely trade higher and indeed, the higher highs are still formed intact and supported in uptrend. Nice.

A few days back, I was really tempted to get into F&N seeing the oversold levels. Gosh. Luckily I didn’t. Low can be even lower. See DOW – it had so many consecutive drops in just 2 weeks! Considering that it has been hugging the lower end of the bollinger band for so long and that monthly RSI levels have hit oversold levels, we might see a brief respite for a while (spilling into the other markets too).

Even Business Times has said that STI might go to the 1,200 – 1,400 region (predicted by many few months back). 1,400, to me yes because I believe all bad news are not out yet and it is more often than not, the index would test  its low again. But 1,200 I am not too sure. No idea how they pluck out that number.

Any comments?