Straits Times Index to continue its consolidation mode.

It was a volatile week for Straits Times Index as growing concerns on possible trade war to happen between US and China. Many have seen that trade war can affect the economic situation of the whole world and hence, reacted bearishly upon retaliation by the China officials. The strongest reaction happened on Wednesday where STI was seen breaking its key support level at 3350 level. However, the reaction was short lived as most of the losses were recovered immediately the next day. This wild swing had puzzled many traders which caused a much strong rebound last Friday. Instead of bearish closing for the week, STI was seen closing at 3442.5 level with 14.53pts gained for the week.

With such wild swing happening in the market, what should our actions be? It is the sign of a market bottom or is …