Retracement risk to usher in Chinese New Year

The Straits Times Index had a flat week last week as its attempt to trade higher turns out to be unfruitful. The week started negatively as the market chose to confirm its resistance turn support level at 3420 level. Bullish strength was then gained on the next day which helped STI to reach its high of 3448 level on Wednesday. However, Greek concerns starts to plague the market again as profit takers exited the market quickly; causing STI to return back to 3420 support level again. This support level continues to hold firmly on Friday. STI ended the week at 3426.22 level with 5.14pts down. Can STI continue to maintain its bullish underlying this week? With this short week due to Chinese New Year, are market participants shunning away from the market?

Let’s discuss the possibilities for STI this week.