Target resistance level of 3355 is being tested.
The Straits Times Index continued their bullish movement last week as market participants are positive on the improving economic environment. Banks results were being reported last week and this lead to bullish strength in the banking sector. With the banks trading higher, the index managed to get a boost from them. Gains were seen during the first 4 days of the week which lead STI to test its resistance at 3355 level. This resistance level held well and caused STI to enter profit taking actions on Friday. Therefore, STI did not end at 3355 resistance level for the week. Instead, it closed at 3330.75 level with 16.63pts up for the week.
With the target resistance level being tested, will further profit taking actions happen this week?
Let’s identify the movements from the chart.
Trend: Uptrend formation, 20 wma up, MacD …