Middle of nowhere

Straits Times Index did not rally back to the resistive trendline that connected the previous 3 peaks or rather, it has not return back to test the resistive trendline yet. Gaps can act as technical levels of support and resistance. For the STI, it can be seen from the chart that the gap up is acting as a resistance and the gap down is acting as a support level and STI seems to be sandwiched between both gaps. Furthermore, the gap down is at the psychological level of 3000 points where a lot of speculators are sentimental towards this level. The trend can only be judged depending on whether STI breaks it's support or resistance level. However, i am still bearish since the rally a few days ago was a false one since it was done with declining volume.

Straits Times Index: