In last week, STI jump 70 points from the opening of 2646 and close higher at 2716. A white candle sticks with little upper shadow indicates that there are small profit taking on the recent new year rally.

Key Economics Data report:

In the coming week, investors will be watching on the European debt crisis as the leaders of Germany and France meet Monday. The euro may also stay under pressure as investors monitor the outcome of bond auctions in Italy and Spain and await potential credit downgrades in the euro zone.

The coming week is also important because it is the official launch of the fourth quarter earnings season.

Technical Analysis on STI

STI index has managed to break out of the resistance at 2679 in this week and this affirms to the bullishness of the investors.

1) In weekly chart, a white candle sticks with little upper shadow affirms ...