Content area
Full Text
Let[euro](TM)s look at the Straits Times Index (STI) first. After going up for the past two weeks, STI tested the resistance at 3,090 for two times but was not able to break above it. As I mentioned over Capital FM95.8[euro](TM)s live financial program at 1:15pm last Friday when the STI is at 3,080 (the top of that day), the STI was strong, however, the resistance at 3,090 is likely to be a significant one. STI may not be able to break it very quickly. Yesterday, the STI formed a bearish engulfing, indicating a pull back and consolidation in the next a few days. However, I do not foresee the STI to go down too much because it is not likely to have a sudden change from strong to weak. The 3,040 level will be a strong support for the STI in the next few days.