The Straits Times Index was struggling to find direction last week as profit takers prevented the market to raise higher. During every day, the market opening with bearish action; attempting to push STI to a lower level. However, there will always be willing buyers to hold the market despite strong selling attempts. These bullish buyers tend to dominate the market daily which helped STI to maintain its current level. Therefore, last week turned out to be a flat week. Only 3.83pts was gained. Straits Times Index ended at 3577.21 level.
STI inched higher last week after 2 weeks of strong gains. Has the bullish momentum stopped?
Let’s evaluation STI’s chart for clearer picture.
Trend: Possible sideways to uptrend, 20 wma slightly up, MacD above 0.
Support: 3530, 3450, (20 week MA), 3350 (50 week MA)
Resistance: 3630, 3700, …