Bearishness set to continue to end 2017

Merry Christmas and Happy New Year to everyone! Today’s weekly analysis will be the last of the year before we embark to tackle 2018’s market.

Straits Times Index faced another bearish week as the market comes to an end to celebrate Christmas day. Selling pressure was seen happening throughout the week as short-term bearish pressure continues. Trading volume was on the low side as it always happens during the Christmas period. Hence, there is no room for panic as the selling pressure is not strong. On Thursday, STI failed to hold above the 50 day MA line at 3390 level. This indicates a possible reversal in trend in the daily chart. With these movements, STI end the week at 3385.71 level; dropping 31.23pts for the week.

With possible trend reversal in the daily chart, how will STI react to end the …