Current Trend for the Straits Time Index (STI)

The STI has managed to bounce and retrace from the strong support of 2950 level. We have seen 3 white candles gap ups on healthy volume to nearly test the 50D EMA, however there is still selling pressure due to global uncertainties post mid term elections where the democrats gain back control of the House of Representatives which might open doors to accountability to some of President Trump’s policies.

Currently the index seems to be trading within the range between the 20D and 50D EMA and volume has been lackluster to support the rally. There seems to be some consolidation of price at this juncture and I would recommend exercising patience and wait for a break either on the upside or downside before initialing a trade. We are expecting price to cover the gap at 3022 before deciding on the …