Straits Times Index is in overbought condition.

Straits Times Index is in overbought condition.

It had been a bullish week for Straits Times Index last week as the market enters the earnings reporting period with positive expectations. The week started with confirmation of STI sustaining its breakout of 3305 resistance level. Some weakness was seen for the first 2 days of the week but on Wednesday, another round of bullish breakout happened. 3330 resistance level was being broken easily and this leads to further bullish movements on Thursday. Strong bullish leads were seen in both the US market and HK market during the bullish days. However, on Friday, profit taking actions starts to appear as the market starts to prepare for a long weekend. For the week, STI gained 39.64pts and close at 3350.17 level. Will STI be able to sustain its bullish run this week?

Let’s use its chart to determine the direction for …