I have a few friends that ask me about STI. With the recent bullish run, will STI breach 3300? My answer is yes, but we need to be patient. Most probably it will break in these 2 quarters, but after resting a while.
But having said that, I think the risk is high going into STI now. STI has gone up too fast running from 3052 to 3280! I know there may still be some stocks worth looking, but do exercise good money management now that the market is overbought. If you buy, buy smaller lots.
My profit taking zone for STI is exactly now, between 3250 - 3300.
(If STI breach 3300, then I will be looking closely whether this breakout is a good breakout)
My accumulation zone for STI will be 3150, if STI really corrects. But I don't think this round of correction will be deep. Most likely you won't see 3000 again.
Remember, if there is a chance in the next few months you see 3150 again, that will be Daniel Loh picking stocks again!
Rgds
Daniel
www.danielloh.com
