Straits Times Index to continue its sideways movement

Straits Times Index to continue its sideways movement

The Straits Times Index suffered a week of range trade last week as indecisive sentiment continues to loom the market. Strong resistance level at 3150 had been resisting the market last week, capping the bullish momentum. This resistance was obviously seen on Monday and Tuesday as they show reluctance to surge higher. On Wednesday, selling pressure sets in but it was also limited by 3120 support level as bargain buyers were waiting upon there. Buying strength entered the market on Thursday causing a rebound. However, 3150 level resisted STI’s upside again on Friday. Hence, for the week, STI was basically trading in a tight range of 3115 – 3155 levels. Only 3.43pts was lost for the week as it closed at 3140.44 level. Will STI be able to break out from this tight trading range this week? Which direction will …