Support has been established at around 3,300. This coupled with the rising 50-day moving average at 3,286 may be sufficient to limit declines. If the 3,300 level holds, the eventual upside of 3,450 remains valid.
The Straits Times Index ended the week of June 16-21 at 3,308, up 11 points week-on-week. The consolidation of the past 13 days, comprised mainly of black candles punctuated by a couple of dojis, has not quite run its course. Directional movement indicators are neutral, with ADX at 12 and falling.
The lower the ADX level, the more likely the index may drift. And, since the DIs are neutral, the index would most probably drift sideways, within a relatively narrow range.
