Hitting resistance or losing momentum?

This is a trick question of course. Even though the resistance level was drawn accurately, this loss of momentum is completely understandable as the world is still struggling with the same problems that affects supply chains, relative currency value and consumer spending power. Hence, we should be expecting a loss of around 50-75 points from the STI in the coming week. Currently the 3240 level is quite critical but let’s review other indicators that can hint to us what would technical players in the market do.

STI – Updated Daily Chart

As seen in last week’s market movements, we noticed that technical traders are acting in concert as the retreat was performed almost perfectly. Right now we can expect the market to reach 3180 if the market returns to a gloomy state in the coming week.

STI – Updated Weekly Chart

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