Straits Times Index is on consolidation mode to prepare for further upside movements.

The Straits Times Index experienced a flat week last week despite it being able to break out of the strong resistance of 3255 level. Market participants start to get very wary of the “Sell in May and go away” effect and hence, were finding all sorts of reasons not to get into the market. First, people are anticipating weak data from both US and China market and choose to stay away from the market. Secondly, the heighten tension between Ukraine and Russia was also one of the reason why people were not attracted to the market. Hence, STI was seen trading in a tight range between 3255 – 3280 levels last week; hitting a high of 3284 and low of 3250 levels. Despite the lacking of market strength, STI was still able to make a total gain ...