My Crazy STI prediction from now to end of 2010

Based on the fibonacci lines, we can see that currently we are hitting the major resistance at the 2970 (61.8% of fibonacci retracement). From Jan 2010 to Jul 2010, we can see the STI might be forming a Bull Flag consolidation between 2680 and 2970. Successful breakout of 2970 level might lead a path to 3900 level by the end of 2010.

This is the third time that the STI is testing 2970 since Jan 10. If this time, it fail to capture the 2970, we might see a major sell off all the way to 2100 (forming Head and shoulder formation instead of bull flag consolidation).

In conclusion, STI might goes up or down 900 points from this point onwards. I am quite in favour that STI will reach 3900 as we can see that it is still above the 50 weeks moving average. However we should be very careful that if it happen to break below it. My take is leave some cash if STI happen to reach 2100 and then buy at that level.