In last week, STI merely gain 6 points from the opening of 3183 and close higher at 3189. A white candle sticks with short upper/lower shadow affirms that investors are hesitant on buying further upwards and choose to take some profit off the table.

Key Economics Data report:

The outcome on U.S debt ceiling remains unknown as Congress bickered and postponed voting. Congress was expected to continue their session over the weekend to reach a common plan by Monday. The legislation must be agreed in time for Congress to approve an increase in the debt ceiling before Tuesday’s deadline.

In the coming week, the most important report is Friday’s July employment report, but there is also ISM manufacturing data, monthly auto sales and updates from chain stores on their monthly sales.

Technical Analysis on STI

STI index has broke the critical resistance at 3180 and close at 3189.

1) In ...