Strong start for Straits Times Index in year 2018

Last week is a brand new start for Straits Times Index as the market starts trading for year 2018. The short week started with a bang as STI propelled strongly towards 3450 resistance level. Traders and investors were buoyant by the positive mood as the usual Capricorn effect starts to affect the month of January. Reports were citing strong economic numbers were seen in both US and China as the reasons for the strength in the market. Through all these strong reasoning, STI was able to break its resistance of 3450 with the high of 3469 level easily on Wednesday and Thursday respectively. Some profit taking actions were seen on Friday which brings STI to close at 3489.45 level. This brings a total of 86.53pts up for the week.

With STI breaking out for a new high, will it …