Straits Times Index is likely to continue its rebound but upside is limited.

Straits Times Index is likely to continue its rebound but upside is limited.

STI experienced one of the most volatile week for this year last week; from a bullish opening to a bearish mid week and ends with a bullish closing. This volatility is usually seen only in a bearish market situation. The week started with an attempt to rebound to test the gap resistance between 3221 – 3231 levels but STI failed to maintain the bullishness. Instead, on the next day, the support level was immediately being broken and caused STI to seek another support at 3150 level. This support level was not strong enough to hold the market and it got broken quickly on the next day. However, STI got supported by the firm support level of 3110 and did not get lower after hitting a low of 3094 level. On Friday, STI rebounded firmly and trade back …