The Straits Times Index has no such luck. After a too brief Chinese New Year rally of sorts, there has been some recalibration. Increasingly, it appears that resistance has been established at twice tested 3,250. The STI was also unable to hold on to a support area around 3,150, and sank to 3,107 in the first week of March.
Indicators are neutral. However, the chart pattern isn’t encouraging as the index has been unable to move above the flat 200-day moving average at 3,178 decisively.
As such, the upside is likely to be limited to 3,250, and support should be lowered back to the twice tested 3,100 level. The STI closed at 3,172 on March 15,, up 25 points week-on-week, but down 57 points since the start of the year.
