STI consolidates as blue chips ease

Although the US and global markets experienced a Biden Bump on Jan 21, the sideways trend displayed by the Straits TImes Index resumed on Jan 22. The chart pattern shows the index staying locked within a narrow sideways range.

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SEE: STI down 0.72% despite December NODX expansion

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DBS Group Holdings -which broke out of a sideways range at the start of the year - is consolidating its gains. While its uptrend remains intact, the consolidation phase could take prices down to as low as $25.40 and the uptrend would still be intact. DBS’s closing high this year was $27.42 and this was also the one-year high. When prices resume their advance, this level is the resistance that prices need to challenge. Prices closed at $26.17 on Jan 22.