Bullish vibe dominating the Straits Times Index

Bearish sentiment was reversed last week in the Straits Times Index. Fear of US-China trade war seems to have diminished over the week as the market digested the impact and possibilities. STI started the week testing the resistance level at 3450 level. There was still some bearish pressure during the day but the bulls were able to dominate the market during the day. However, it was unable to break through the resistance level on that day. The breakthrough happened on Tuesday. Buyers were seen rushing into the market to snap up oil-related counters and financials. This helped STI to sustain above 3450. This bullish momentum continued to be sustainable by these sectors throughout the week. Hence, STI managed to close with 58.8pts higher. Closing at 3501.3 level.

Clear bullish action was seen last week. Will this bullishness be sustainable? How far …