10 January 2020


The STI has moved sideways over the last few trading days. This is a sign of uncertainty, with the STI undecided whether to go down or up. Today’s candlestick is a doji, which is a pattern formed when the open and close values are about the same, with distinct upper and lower shadows, resulting in a pattern like a cross. This is also a sign of uncertainty.

The chart shows a trend channel in blue. As the whole uptrend falls within the channel, the structure so far is a corrective pattern. The choppiness of the bars also confirms that we have a corrective pattern. So the prognosis is still that the STI will most likely go downwards.

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