Trend: Sideway, downwards bias
Last week, we said that the market has turned and the trend is up. We were spot on. STI rebounced with 6 sessions of green, moved up from 3100 to the 3180 level. So what could we expect next? Will STI continue with its up trend?
STI 3180 is a strong resistance the wave must cross and remain to continue with this up trend. After continuous sessions of green the waves are showing exhaustion. In addition, the waves are now ebbing up on low volume. There is a high chance that the market will drift lower from here. And will do so until the end of June. The first support level is STI 3100. STI 3100 support must hold, otherwise the next support level is 3050. As such, if you are intermediate trader, you may like to sell your positions and stay sideline for the correction. Short term traders who have held on to their positions from our call last week may like to realise the profit now, and stay sideline as STI approaches its 3180 resistance.
