Straits Times Index confirmed its uptrend formation and will head higher.

It was a week of strong rebound last week as Straits Times Index reacted to the takeover news by Capitaland and Wheelock properties. Because of that, properties counters were buoyant by the confidence of the values of the assets in local property counters. On Monday, STI started the week slightly lower as it is struggling to hold its support at 3200 level. Although it had broken the support slightly, it managed to recover on the next day with a gap up action. This gap up brought confirmation to STI’s uptrend and helped STI to break its resistance at 3230 level on Wednesday. Next resistance at 3255 level was being tested on both Thursday and Friday but it held firmly. Hence, for the week, STI was able to gain a total of 55.58pts and ended at 3252.8 level. ...