STI consolidation...

Let's review the index.... Since the May sell down, price is consolidating in a tight range. From the chart, there are 2 weekly inside bar after the huge bearish bar. Further, the MA flatten and price whipsaw around it. What is the chance of a upside breakup v.s. downside breakdown?

Sad to say, chart and technical analysis can't forecast the future. It says a lot about what has already happened but never reveal anything about the future. As a tool, it gives an indication of where price MIGHT go and we react by taking calculated risk on possible direction. Sometimes it gives hidden clues by forming patterns which analysts had painstakingly classify into continuation and reversal.

What's up now? I prefer to wait for market to give a clear signal where it wants to go from here. It is in consolidation now, and chances are 50/50. No one can pick tops and bottoms; that's only possible in hindsight. My bias is towards further downside though that is subjected to price action and new information inflow.

Happy profiting!!!