Straits Times Index facing resistance at 3530 level.

The Straits Times Index continued its bullish streak last week. Buyers were positive of the upside and were seen buying during the early week. This leads STI to reach its resistance level at 3530 level. However, the resistance level at 3530 level seems to be firm. This prevented STI from going higher as profit takers were seen dominating the market. The profit taking actions were not strong enough to push STI lower. The market continued to stay close to its resistance level which helped to maintain the early gains during the week. Hence, STI was able to close at 3520.56 level with 31.11pts up for the week.

Since STI is now trading at resistance level, the key question will be whether STI will be able to break this resistance level.

Let’s get some clues from the chart.

Trend: Uptrend formation, …