STI Technical Analysis from 25 Jan to Mar 10

Take my prediction as a pinch of salt. Remember my first rule, market direction cannot be predicted.

We have a long bull run from Mar 09 till now. The duration is about 10 months. I am predicting that the start of a short term correction should happen very soon. Looking at the MACD, RSI and Stochastic, these indicators are suggesting an overbought condition in the market. I am looking at 10% to 20% fall from the recent peak of 2900. With that, the index may fall till 2500 in Mar 10. However if you are buying now, my suggestion is try to avoid financial and property stocks, as they are overvalued in my opinion. Any uncertainty in the market may trigger a hard sell down on these stocks.

Currently I am waiting patiently for the correction to buy in more shares. If there is no correction, I will not put in any more position.