Hello Readers,

Welcome new readers to my blog. It has been one mth since i wrote weekly review on Straits Times Index.

Good to be back writing my view on STI. I hope every one has a good month as I did because STI is on uptrend.

Let us look at our charts and work on deciphering the message for the coming week……

STI surrender all the gains (Friday afternoon) and ended week low when the market closed on Friday.

STI Open: 3,409.36

Week High: 3,432.62

Week Low: 3,391.20

STI Closed: 3,391.20

Price Change: -20.30

Percentage change: -0.60%

Total Volume: 1.35 billion

The weekly impulse ended the week green, but the daily impulse, which tends to change faster than the weekly, is blue. Remember, the impulse system is not a trading system. It is a censorship system. Here the daily says: "do whatever you like but the weekly prohibits from shorting".

The daily is at the upper channel of the envelope and at over brought condition.

The key to a 50 points plus rally is 3,370 supports must holds. When market participants see’s this market is not breaking down, they will rush in so not to miss out on the next up move. Failure to hold this critical level, and we could see a quick 20 point drop instead to 3,350.

In summary, we may be seeing some pull back on STI as daily MACD histogram is ticking down. This is the time to wait and see, trade lightly, and grab profits quickly. Even during difficult weeks it is possible to find pretty attractive individual trades.

Best wishes for the week ahead,

Divergence Trader

Company earnings report for the coming week:

3^rd Feb - OSIM(FY) & SIA Eng(3^rd Qtr)

4^th Feb - SATS (3^rd Qtr) & Singpost (3^rd Qtr)

5^th Feb - GLP (3^rd Qtr)

6^th Feb - Ascendas Hospitality Trust (3^rd Qtr), Great Eastern (3^rd Qtr) , SIA (3^rd Qtr) & HPH Tust (FY)

The post Is the Market ready for a pullback – Weekly Review 02/02/15 appeared first on Divergence Trader.