Christmas Rally to usher the New Year in with new highs

The short Christmas week turned out to be another cheerful week as the Christmas rally continues. Strong gains was seen on Monday to bring Straits Times Index back above its resistance at 3305 level; ignoring the possibilities of continuing its downtrend movement. This had lifted confidence back to the market and hence, it continued to trade higher. Tuesday’s trading opened strongly with a gap up opening but it felt resistance from 3350 level. There were expectations of profit taking after Tuesday’s weak movement but on the Christmas Eve day, STI was able to make further gains despite trading half day. This momentum continued over the Christmas day and STI was seen trading higher to end the week. STI closed at 3353.68 level with 74.15pts gained for the week. Will this bullishness continue this week to usher in …