Straits Times Index poised for retracement movements

The long awaited bearish sentiment started to appear in the Straits Times Index last week after 5 weeks of rally. STI attempted to trade higher during the early week but failed to sustain the bullishness. Selling pressure was triggered by the bearishness in the US market. There was no strong reason for the market to start buying and hence, sellers dominated the market last week. Due to this, the momentum to help STI to reach 3630 resistance level has stopped and reversed. A total of 37.32pts was lost during the week as STI close at 3539.82 level.

Has the bullish momentum in STI truly ended? Will this bearish action be a good opportunity for us to start buying?

Let’s read STI’s chart to understand the situation.

Trend: Uptrend formation, 20 wma up, MacD above 0.

Support: 3530 , 3450 (20 week …