Straits Times Index starting its bullish streak

The Straits Times Index managed to perform a rally last week as it confirmed its rebound from the support of 3350 level. This bullish action happened after breaking its resistance at 3450 level; which leads to confirmation of the bullish reversal pattern. Looking into the daily market action, it seems that there was strong tussle between the bullish and bear as 2 days of the week ended in red. Despite the tussle, the bullish buyers eventually managed to maintain the price and helped STI to end the week high. A total of 89.71pts was gained which lifted STI to close at 3533.22 level.

With such strong bullish closing last week, many are questioning on whether this bullish strength will continue. Based on my previous week’s review, there is also a possibility of lower high formation. So this week’s movement in the …