The STI has edged up significantly and the ongoing ((D)) leg is the clue that STI will be heading for further upside in the near term. 3,265 resistance zone remain the key and the best estimation is that STI will likely forms a sort of consolidation within the resistance zone before continuing the upside.
We should see long term target of 3,500 by end of 2021
The Straits Time Index has broken out of the immediate downtrend line and the uptrend seems to be the new norm after STI continue with a series of higher highs and higher lows.
Initially the STI is posied to reverse and having a potential throwback into the support zone at 3,065 region as there was a shooting star formation within resistance zone 1. However, last week’s bullish candle strike back with a piercing line like formation. Hence, we are confident that the bullish momentum will likely set the tone for further upside as STI has not reached its minimum expansion target at 3,444.61. Which is the 161.8% expansion target of 2,208.42-2,839.39 and 2,420.27.
However, we do not discount the fact that STI will not reverse and correct lower near to its support zone.
The ichimoku indicator is showing a continuous uptrend for the STI but the indicators are showing signs of slowing and consolidation especially the Senkou-Span A and B showing a flattish momentum. Perhaps the comforting fact is that the STI last Friday emerged with a strong bullish marobozu above the Tenkan-Sen. As such, there is a clear signal that STI is ready to take on 3,262 region.
