The Straits Times Index managed to halt its bearish movement as it managed to find its support after breaking its important support of 3270 level. The bearish sentiment only managed to push STI to as low as 3244 level before bargain hunters entered the market to scoop up bargains. However, the buyers were unable to push STI beyond 3270 level as this level seems to turn into a resistance level. Because of this, STI only managed to gain 7.58pts for the week and close at 3259.57 level.
The question now in traders head is whether the important 3270 level has turned into a resistance level. If this is so, further downside pressure might continue to occur. Therefore, we need to verify this further.
Let’s verify with these informations.
Trend: Uptrend formation, 20 wma up, MacD above 0.
Support: 3270(possible) (20 week …