STI breaks its 3,200 resistance curse

THE Straits Times Index (STI) mounted a strong comeback from the low of 2,200 in March 2020. It has since returned above the 3,000 psychological resistance level and the weekly downtrend line. Since then, the Straits Times Index has been making a series of higher highs and higher lows.

However, the growth halted soon after a break above the downtrend line in April 2021. For the rest of 2021, the index had been within a descending triangle/pennant formation. At that point, 3,200 was the magical resistance; but November 2021 saw a brief upside break above 3,200, and it closed at a yearly high of 3,273 points.

But upside was not sustained, and the index soon fell to the 3,050 immediate support region, causing the rally to be a bull trap.