The bullish sentiment remained firm last week. The bullish sentiment was mainly seen during the early week which pushed STI to as high as 3611 level. This bullish sentiment came to an end last Thursday as market participants preferred to stay out of the market. Strong profit taking pressure returned most of the gains of the week and this sentiment ended the week at 3567.14 level. This translates to a gain of only 16.78pts despite a strong start.
Will the bullish movements for the past few weeks come to an end? How will the month of January conclude?
Let’s review STI’s chart.
Trend: Uptrend formation, 20 wma turning up, MacD above 0.
Support: 3530, 3450, 3355 (20 week MA)
Resistance: 3630, 3700
Candlestick – White shooting star.
Histogram – 4 Gs. No bearish divergence. No bearish crossover.
RSI – At 75….