We are at the cross-junction for the Index closing today at 3,124 sitting almost exactly at the support line. The index can go either direction next week.
1. From the chart, STI close along its long term 'Red Line' for the week after it rebound strongly on 21Jun from its low of 3065. The break below 3100 on 21Jun trigger heavy selling but the bulls managed to gain control and push the index back up to the support line for the week closing. However, we are still not out of the woods.
2. In view of the closing for the week, a rebound towards the first resistance level of 3,240 'Blue dotted Line' is possible as the STI is still technically oversold.
3. A continuation of the uptrend will be upheld if the index can rebound above 3,300 and stay above. This is critical as it will recover more than 50% of the prior losses.
4. If none of the above happens and the index close below 3,100 in the coming weeks will likely trigger a bearish scenario.
