STI Elliott Wave Analysis (01-03-21)

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Here’s a brief outlook of the Straits Times Index for the 1st day of March 2021.


Our STI Elliott Wave Analysis is showing signs that one of Asia’s worst performer, the Straits Time Index may be starting to turn the corner.


Well, at least in the short to medium term in our opinion.


As compared with the other indexes in the Asia region, the Straits Time Index has been consolidating for the longest time.


We begin our STI Elliott Wave Analysis from the low of the 2009 financial crisis on the weekly charts.





Previously, we anticipated an W-X-Y Expanding Flat corrective structure bounded by the “Diverging” dotted double trendlines.


With the end of this correction becoming our proposed Wave 2 that is where we initiated the upward sloping major trendline.


However, our entire STI Elliott Wave Analysis was thrown into disarray when the pandemic occurred.


The drastic impact of the pandemic caused the STI to plunge way below the proposed upward sloping major trendline.


After much deliberation, our current STI Elliott Wave analysis leans more towards a 3-3-3-3-3 Leading Diagonal in the larger Cycle degree.


From the charts, we observed it took the STI almost a decade to complete the 5-3-5 A-B-C motive Wave 1 in white.


And if you observe closer, the middle W-X-Y B-leg in blue was in consolidation for almost 5 years.


The corresponding A-B-C Zig Zag corrective structure that followed suite was fast and furious coupled with a steep C-Leg due to the pandemic.





Since then, the STI has make a seeming strong “V” shape recovery.


Our STI Elliott Wave Analysis now points towards a forecast for a 3 wave motive move up to form the impending Wave 3 in White.


Let’s now wait and see if this forecast plays out according to plan.


Hope all that makes some sense.


Trade Safe and never risk more than 1% to 2% of your account equity on any trades.


For more potential trade setup suggestions on the US Stock Markets, check our Blog Posts On US Stocks.


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For more articles on the Elliott Wave Principle, check out our other posts in our  Elliott Wave Blog.


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