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Fibonacci Retracement Levels scores hat-trick with Straits Times Index

76.4% Fibonacci Retracement Levels predicts three major turning points for Straits Times Index

I hope by now you really believe it or you don’t. So this posting I hope will reinforce your conviction to master concepts of Fibonacci Retracement Levels or you are totally turned off by my persistence. Especially an hour ago I just posted the twin brother of this post and its called ‘Fibonacci Retracement Levels scores hat-trick with Hang Seng Index‘. Without further ado, I present Exhibit 1.

STI Fibonacci Retracement

76.4 good predictor of major turning points for Straits Times Index

Evidence #1 – Market Correction following Tech Bubble

  1. Straits Times Index rallies from bottom of Asian Financial Crisis to top of Tech Bubble.
  2. Market subsequent corrects following the Tech Bubble burst and then 9-11. Found support at 76.4 percent fibonacci retracement.
  3. Subsequently this bottom was tested because of the SARS Epidemic and found valid.


Evidence #2 – Market Correction following Lehman and AIG crisis

  1. Market rallied to new highs in 2007 but subsequently collapsed following US Subprime Crisis.
  2. Support was found in 2008 and vindicated in 2009 when the Straits Times Index got supported at 76.4 percent fibonacci retracement level drawn from 1998 low to 2007 high.


Evidence #3 – 76.4% resistance despite central banks massive stimulus around the world; solid growth numbers

Lifting what I wrote here ‘Technical analysis: N225, HSI, STI price action rejects Fib ratios

Straits Times Index pin bar, bull trap, 76.4% Fibonacci ratio

  1. Straits Times Index does a bull trap at the 76.4 Fib ratio.
  2. Back late-2010, there was a near test.
  3. Price candle is a pin bar albeit short tail.
  4. But with confluence and when printed on monthly chart, a short-tailed pin bar should still have plenty of significance.
  5. Wash N Rinse.


What is in it for me? Its great on hindsight but is it any good forward looking?

Presuming that the current high is a turning point indeed; that its violation will make any prediction by Fibs useless. The level to watch is in the chart.

STI monthly chart with illustrated fibonacci retracement levels

Should history repeat, we know which level to watch for the Straits Times Index

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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