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STI – Rounding top?

Username : gcw
Email : xxxxx
Message : Hi Jon,

Im an active contributor to ur cbox. follow u religiously every wk for ur youtube clips too, but not in ur inner circle.
anyways, i wanna ask u how to differenciate accumulation from distribution??? r we in distribution mode or accumulation now?
And also, im seeing rounding top alike pattern in STI….am i wrong?
pls enlighten me. Thanks in advance!

There is no clear sign that one can use to tell accumulation or distribution. The group that is accumulation will not openly advertise and shout that “I AM ACCUMULATING! You better buy this counter now before I will make it go higher”, right? But if one pays attention to the chart, one can roughly guess if it is accumulation or distribution but like I said, it is still an educated guess. In TA, there is no sureness.
You may have heard about the term consolidation. It is during this consolidation, something is happening to this counter, but in terms of price, “nothing” is happening. This “nothing” is happening price movement frustrates retail investor and test their patience. But underneath, something is happening, either accumulation or distribution. Ask yourself, would smart money accumulate a stock when it is very expensive? Or sell a stock when it is very cheap? Think this somewhat answers your question.

Is Straits Times a rounding top? If you change the timeframe to weekly chart, this is what you will see…

Straits Times
But don’t get too happy shorting yet. STI has not break the rounding top support. It is still forming but not in play yet.

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