Week-on-week, the Straits Times Index lost a mere six points. But this calm belies a one-day 37-point drop on April 21, followed by a rebound on April 22. Technically, the STI’s quarterly momentum is struggling and the tussle could be resolved on the downside. In addition, short term stochastics and 21-day RSI are falling. In the immediate term, the STI may continue to stay within the 3,150-3,220 range. However, the uptrend may not resume in the next five trading sessions (end-April) as has been previously mentioned. If the index breaks below 3,150, the consolidation may linger on for a “sell in May and go away” theme. The original break above the narrow 3,071 to 3,118 range in the week of Mar 15-19 still remains valid as does the upside of 3,368 to 3,377 but this may take a longer time frame to achieve.

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