The STI Index finally closed the week on the positive
after 5 consecutive weeks of losses.
1. From the chart, STI close around the long
term 'Red trend
line' for the week at 3,150. The immediate resistance at
3,240 and support at 3,100 and 3,060.
2. In the coming week, a rebound towards the first
resistance level of 3,240 'Straight green
line' is possible.
3. A continuation of the uptrend will only be uphold if
the index can rebound above 3,300 and stay above. This is critical as it will
recover more than 50% of the prior week’s losses.
4. If none of the above happens and the index close
below 3,060 again in the coming weeks will likely trigger a bearish
scenario.
