Straits Times Index to consolidate this week

The Straits Times Index had a bullish week last week but it failed to reach the recent high it had achieved last month. The start of the month was strong as STI managed to gapped up on Monday which brought strong bullish momentum to break its resistance at 3530 level. STI managed to sustain its resistance level till Wednesday. On Thursday, market participants were sceptical of the strength and started selling. This brought STI back below 3530 level. Further selling pressure pushed back to the gap level which it had created on Monday. Despite the bearish movements at the end of the week, STI was still able to maintain gains of 26.57pts. Closing at 3512.14 level.

With bullish movement last week, will STI be able to start off an uptrend movement?

Let’s look at STI’s chart.

Trend: Possible sideways to uptrend, …