In last week, STI lost 36 points from the opening of 2695 and close lower at 2659 A black candle sticks with little lower shadow indicates that there are still some buying pressure on the support level.

Key Economics Data report:

On Friday, U.S agreed to extend a payroll tax cut for two months. The deal still have to be approved by the full Senate and House, fell far short of President Obama’s push for a one-year extension of the tax relief and long-term unemployed benefits to boost the country’s fragile economic recovery.

Technical Analysis on STI

STI index has re-test the support at 2643 and managed to close above this level.

1) In weekly chart, a black candle sticks with little lower shadow affirms that investors continue to buy on the support of 2643

2) The weekly trading volume falls further on holiday seasons.

3) MACD and RSI indicators are flat …