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14 March : Straits Times Index Chart

Straits Times Index has developed into a upchannel since the reversal started on 8th Feb (Refer to channel lines in the chart.) MACD and RSI has been pointing to a upward inbound trend as evident from the overbought RSI. However, two things to take note is that the STI volume is decreasing and the candlestick for last few sessions points has been a short range Doji and spinning tops. This indicates a decline in momentum. Also the index is approaching the 2898 to 2944 zone which would pose a resistance to the index. Hence, expect the index to take a breather from here if it is to break above Jan 2010 high.

Generally, most of the stocks have reversed the trend and some stronger stocks have actually broken out of consolidation zone and make a new high. This is positive development and we expect that should the index hold well, the rest of the laggard stocks will continue to breakout to find new high.

For regional market index and Dow Jones Index analysis, pls refer to affliate site stocktradezone.com for weekly Index update.