Straits Times Index (STI) continues to experience hangover from last week's US FED rate hike and Janet Yellen’s hawkish forecast. Currently, we are seeing the index in a retracing swing after touching 2,980.
STI will test its support at 2,880 – 2,900 level, a significant support for the index. It is a confluence of 3 technical support level.
Personal bias for STI to rebound from this crucial level (2,880 – 2,900) and retest 2,960-2,980 level. Alternate direction is STI continue to retrace and trades back towards recent low of 2,750 level.