The index has managed to move to test the 50% retracement level of 3,350. The speed at which this was covered suggests that the index may be able to test the breakdown level 3,420.
The Straits Times Index (STI) rose from a low of 3,238 on Aug 12 to end the week 3,352, up 114 points week-on-week, supported in part by the rally on Wall Street.
The rebound has taken the index above the still-rising 100- and 200-day moving averages with the STI covering the gap between relatively large gap that materialised between 3,314 and 3,381.
