In last week, STI lost 23 points from the opening of 3001 and close higher at 2978. A black candle sticks with short lower shadow indicate that bears have begun to short the market.

Key Economics Data report:

In the past week, tensions surrounding the sanctions on Iran put pressure on oil prices, sending to US$109.77 per barrel, a gain of nearly 6 percent. Higher oil prices will affect the stock market on a continuous basis and it will help companies that get profits from higher oil prices and it’s going to hurt companies that depend on domestic demand.

Technical Analysis on STI

STI index has failed to break the critical resistance at 3005 and begun to pullback in this week.

1) In weekly chart, a black candle sticks with short lower shadow which affirms on the profit taking on the overbought market.

2) The weekly trading volume gain slightly as ...