A dark cloud cover has formed on the candlestick chart, which may lead to a few sessions of consolidation. This chart pattern occurs when the index opens higher and closes below the 50% mark of the previous session. Based on the trading pattern of March 27 and 28, the STI needed to close above 3,975, but it closed at 3,972 on March 28. Support appears at 3,950.
The Straits Times Index briefly moved above 4,000 on the morning of March 28, the last trading day of the first quarter. Traders who blinked may have missed the record-breaking move.
Many years ago, David Fuller, the point and figure chartist referred to round numbers as roundophobic resistances and roundophilic supports. That may have materialised for the STI when it challenged 4,000 for the first time.
