It was a retracement week for Straits Times Index last week. STI failed to break 3230 resistance level and retraced strongly on the first day of the week. 3200 support level was broken on Monday but STI managed to recover above it on Tuesday. Hence, Monday’s drop turned out to be a whipsaw scenario. STI got lifted higher on Wednesday but it failed to sustain its gains for the next few days. STI was seen stubbornly holding above 3200 level on Thursday and Friday despite bearishness setting into the US market. To end the week, STI closed at 3198.22 level and lost 14.50pts. With DJI closing 143.47pts down, will STI be affected by DJI’s bearishness this week? Or will STI still remain bullish and continue its uptrend formation?

Let’s get the direction from ...