STI Momentum Update

STI is at its overly bought stage, with target of 161.8% fib level at 2954 reached yesterday. Current STI price at 2945( 12.15pm), is also the gap resistance area. Probability of a retracement on STI has increased now.

On the other hand, my STI momentum chart also shows STI has exceeded its top band, which indicate extremely bullish and overbought, a retracement will usually follow through when market gets too hot.

Immediate support level to watch for STI is 2940, then 2918 will be the next major support if it closed below 2940.