In our previous update, STI Poised To Rise, we highlighted the breakout of STI above the cloud. We believe price is likely to rise but there was a possible gap hindering the rally. We highlighted the gap along the rally route and when price can close this gap, a rally is likely to carry the STI to 3330.
Today, STI reached a high of 3250, partially covering the gap. The upper limit is at 3256. A move beyond 3256 would be good news and a possible rally to 3330 could be in the progress. The target 3330 is Fibonacci 161.8% price projection of the rally from a low of 3.40 to a high of 3216 before the correction sets in and see the index declined to 3070.
MACD is rising and in the bullish half above the zero line. For the next couple of days, watch the resistance point at 3256.