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The resistance is around 7.50 On top of that, it has broken a very significant uptrend line which was established in 2009. The 20 MA has flattened off and is converging towards the up sloping 40 MA, signifying the weakening of the uptrend. We may it correcting to the support at 6.50 The next support if it break below 6.50 will be at 5.40.May want consider selling on strength.

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STI has broken down from the 40 and 50 Moving Average. Can consider to lock in your profit.

(Sell on strength but does NOT mean short)

20 MA and 40 MA are flat . CCI already high indicating the wave are already near max.

At best we are on a sideway.

STI support 2570 which is also at sloping up 100MA.( Long term can consider buy but NOT now)

China stock market has broken the uptrendline. watch it . CSI system already give sell signal since 12/08 .

China being the leader so watch it for STI .

follow up post on capitaland , today will be trigger for short for capitaland. stop loss will be above the trendline.

weekly chart , we are seeing a divergence in the momemtum and the STI, ie momentum is dropping.

STI daily chart , STI is now in sysmmetrical triangle , this chart pattern is a continuation pattern.However the STI need to break out of this triangle to confirm the continuation of the uptrend.

My personal view.

Respected trader and educator J. Welles Wilder developed “AverageTrueRange” (ATR) as a tool for a more precise and realistic calculation of market’s price activity and volatility.

The ATR is useful when calculating the directional movement of a market. Wilder defined the “TrueRange” of a market to be the greatest of the following periods:

• The distance from the session’s high to its low.
• The distance from the previous session’s close to the next session’s high.
• The distance from the previous session’s close to the next session’s low.

A good example of a situation where TrueRange would be significantly larger than the normal daily trading range would be when price gaps occur on bar charts.

“TrueRange” measures market volatility and is an integral part of indicators such as ADX (Average Directional Movement) technical indicator, or several others, to identify the directional movement of a market. The ATR is the basic unit of measurement for Wilder’s Volatility System.

AverageTrueRange is a moving average of the TrueRange values over a period of time. The periods are the number of bars in a bar chart. If the chart displays daily data, then the period denotes days; in weekly charts, the period will stand for weeks, and so on. Wilder used a period of 7 for a default setting. Other common periods used are 14 and 20.

The AverageTrueRange indicator identifies periods of high and low volatility in a market. High volatility describes a market with ongoing price fluctuation; low volatility is used to define a market with smaller price range activity. 

When a market becomes increasingly volatile the ATR tends to peak, rising in value. During periods of little volatility the ATR bottoms out, decreasing in value. A market will usually keep the direction of the initial price move, though this is certainly not a rule. Analysts, therefore, tend to use AverageTrueRange to measure market volatility and other technical indicators to help identify market direction.

Wilder has found that high ATR values often occur at market bottoms following a panic sell-off. LowAverageTrueRange values are often found during extended sideways periods, such as those found at tops and after consolidation periods.

Measuring market volatility can help in identifying buy and sell signals and, additionally, risk potential. Markets with high price fluctuation offer more short-term risk/reward potential, because prices rise and fall in a shorter timeframe.

Wilder has a book, “New Concepts in Technical Trading Systems,” where more information on TrueRange and the ATR indicator can be found

These are the returns for the last 4 signal using CSI trading system. 

The return are 37.1% ,29.1%, 8.2% , 4.1% .

Resistance 2311 support 2200, 2100 , short term 20 MA start to turn down . Price now below 20 and 50 MA. 100SMA is around 2000 but sloping up .

Weekly chart show downtrend line broken support turn resistance . Volume has drop significantly. Consolidation in weekly chart.