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We saw the repetition target (second red box) of 2621 hit recently. The size of the second box is the same as the size of the first box.
It is quite certain that we are in long term bear market. If it is true then the long term target is the bottom of the third box which is around about 2120.
STI Daily:
Last few days we saw a big rally from the bottom. This rally is a corrective rally which could unfold in 3 waves (A, B, C). We are near the top of wave A. Once wave B begins, it might retrace more than 50% of the rally followed by a wave C rally.
The biggest rally on the way down from the top of 3227 was from 2680 to 2910 about 230 points. Adding 230 to recent low of 2521, we get 2751. Which coincidently is near the recent top. This is depicted by the two green boxes. This tells me we are near a short term top and we should pull back atleast around 50% of the rally.
We also see a falling broadening formation on the daily chart breakout. After testing the breakout price again we should resume the rally to test the high of the falling broadening formation.
STI Hourly:
We are currently near the resistance trend line. We might see some pullback followed by a rally to hit the upper trend line.
STI Hourly:
Short term EW depicted on the chart.
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