Straits Times Index starting to show signs of weakness.
The Straits Times Index attempted to trade higher last week as the market entered deeper into the earnings reporting season. The week started with profit taking action but buyers were quick to snap up the sellers the next day. Further buying continued but it failed to reach the resistance at 3255 level; reaching a high of only 3249 level. With lacking of fresh catalyst to push the market higher, sellers dominated the market at the end of the week. This pushes STI lower, ending at 3326.52 level with 4.23pts down for the week.
As STI is facing resistance right now, how will STI behave this week? Will there be opportunity for STI to be able to break 3255 resistance level instead?
Let’s analyse the chart.
Trend: Uptrend formation, 20 wma up, MacD above 0.
Support: 3270, 3190 (20 week …