Straits Times Index in consolidation mode but upside still prevails.

Straits Times Index in consolidation mode but upside still prevails.

STI’s gains were gradual last week as market participants start to get cautious as the price got higher. The week started off with bearishness as market participants were expecting the market to retrace after breaking its resistance level of 3430. However, the resistance turn support of 3430 level held well and preventing STI from going into a deeper retracement. There were multiple attempts by STI to have a deeper retracement but it continued to trade higher instead. There were tussles between the bulls and bearish everyday which make the market indecisive despite being able to trade higher day by day. Hence, STI did not show any significant gains for the week. STI was only up by 5.53pts for the week and closes at 3449 level. Will the cautious market condition continue this week?

Let’s look into the chart to …