Nonetheless, directional movement indicators remain intact. Average directional index (ADX) is rising and the directional indicators (DIs) are positively placed. An earlier breakout of 3,640 on Nov 7 indicated a measuring object of 3,980, and this remains valid. Quarterly momentum is trending sideways despite the STI’s retreat. These indicators suggest that the STI is likely to remain resilient despite its near-term retreat.
The Straits Times Index (STI) lost 61 points on Jan 10 to end at 3,802 and up one point week-on-week. On Jan 8, the STI made a new high of 3,886.
Just a week earlier, on Jan 3, the index was challenging its resistance area at the 3,800 to 3,822 level, breaking out during the week of Jan 6-10. However, the breakout was short-lived.
