27 Aug 2007

Potential short term correction?

Few things to take note :

1. STI volume is getting lower as it approach the recent high of 3441, many stocks also have similar patterns with volume getting thiner

2. STI is around the 61.8% retracement level, which could be a near term resistance level

3. stochastics - short term signal is overbought

many short term traders will be watching for these short term signals for a chance to take short positions again.

be nimble and trade with care