On a positive note, ADX is at zero. The DIs which were at extreme negative levels in early March, are now neutral. Most likely the short-term trading range could turn out to be narrow. The VIX Index is at 19, and this suggests, that volatility has receded and market movements may be relatively narrow, and possibly calmer than in the first half of March.
The Straits Times Index continued to gain ground in the week of March 27-31 to end at 3,259, up 47 points week-on-week. In total, the STI has gained 165 points from the intra-day low on March 14. This takes the STI to the confluence of its 50- and 100-day moving averages at 3,270 +/-.
As such, the area around 3,270 is likely to provide resistance for the rebound move. A doji coupled with a small black body on the candlestick charts after five days of white candles suggest some sort of short term pause in the current up-tic. In terms of support, the 200-day moving average is at 3,216 and this may provide a preliminary level of support.
