STI is rallying close to the mentioned resistance of 3150, but the banks are showing signs of a pullback. Notice how UOB led the upward charge on sharp volume on 30th of June, via a gap. The gap has since been closed and the last traded doji formation does not reflect well on the chances of a follow through rally on the STI. Notice how the volume has dipped over the last trading sessions, and the weak rebound that penetrated 19.74 resistance but only to close below.
While the overall trend is still up, the odds point towards a pullback for this leg now.
This is the weakest performing bank over the month, proven by the bearish candle followed by several spinning tops. Friday's rebound is almost negated with a open high- close low trading day, coupled with low volume.
The strongest performer among the three finished the week with a shooting star, reinforcing the overall weakness of the financial sector.
Overall, going by past trends, weakness of the financial sector on a rising index usually foreshadow a decline. With the weak close in the Dow Jones Index, i expect Monday to open slightly below 3150. I would urge traders not to get too excited should the index pierce above 3150 during intraday trading. Rather, it would be wise to observe the close to see if any surge is genuine. I expect Monday's closing to be weak.
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