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STI Weekly Summary:
Strait Times Index has maintained its uptrend for continuous 5 week, also made new High of 3457.07 and closed in positive territory.
STI opens @ 3441.70 marks and then it made week low @ 3425.18 levels and after taking support at that level STI crossed previous week high i.e. 3445.39 and made its new high i.e. 3457.07 level. Finally STI closed with very moderate gain of 5.53 points @ 3449.30 levels. About 1.4 million shares of SIA changed hands, more than double of its 30-day average in trading volume.
Market Forecast for week ahead:
STI continues the same upward rally for 5th week, after crossing the 3320 mark. This week STI crossed 3450 mark after December 2007 and closed above its 78.6% retracement level.
Now STI trading well above its 78.6% retracement level i.e. 3373.23 marks, and above this level next milestone comes @ 3908 mark which is far away from current level. Between this we can see long consolidation phrase as well.
Today STI formed a candlestick pattern called spinning top candlestick with a long upper shadow, long lower shadow and small real body are called spinning top. One long shadow represents a reversal of sorts; it represents indecision.
The small real body shows little movement from open to close which is true in case of STI and the shadows indicate that both bulls and bears were active during the session. Even though the session opened and closed with little change, prices moved significantly higher and lower in the meantime. Neither buyers nor sellers could gain the upper hand and the result was a standoff. After a long advance or long white candlestick a spinning top indicates weakness among the bulls and a potential change or interruption in trend.
STI Resistance:
STI having Resistance @ 3470 and above this level it may take resistance from 3500-3550 levels.
STI Support:
STI having nearest support @ 3400 below this 3380-3350 will be the support area for market.
Technical Indicators:
Technical indicators are giving bullish impression, MACD give its bullish crossover, RSI trading above its centreline @ 77.56 and CCI also turning to positive and trading @ 241.582.
| Support 1 | Support 2 | Support 3 | Resistance 1 | Resistance 2 | Resistance 3 |
| 3400 | 3380 | 3350 | 3470 | 3500 | 3550 |
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