The Index continues its rally since coming into 2017, with intraday high at 2,986. However, a closer look shows some signs of exhaustion.
Technical Observation:STI will likely to trade in a sideway momentum in the up coming 2 weeks, in view of the positive price action with light volume trading. The forecast sideway trading action also coincides with the eventful January calendar ranging from earnings announcement, economic data to important US speeches. Thus, traders or investors can consider profit taking near 2,980–3,000 zone and accumulate near 2,900–2,920 zone.
Alternative direction will see STI moves towards 3,050–3,060 zone on light trading volume.