Straits TImes Index is on sideways consolidation mode.

Straits TImes Index is on sideways consolidation mode.

It was a very volatile week for Straits Times Index as it was filled with bullish excitement in one moment and yet it was plagued by bearishness. STI started the week with a strong rebound from 3065 level and tested 3100 resistance level on Tuesday. However, China concerns loomed the market and caused STI to plunge back after testing 3100 level. A sell down on Thursday triggered fear the market participants as there is potential of turning STI into downtrend momentum. However, on Friday, STI managed to rebound back above 3065 level in attempt to save its trend. Will this week turn out to be another exciting week that is filled with volatility?

Let’s evaluate STI’s chart for this week

Trend: Sideways, 20ma flat, MacD at 0.

Support: 3065, 3030, 3000

 Resistance: 3100 (20 & 50ma), 3120 (100ma), 3150 (200ma)

Observations:

Candlestick …