Market Outlook (27/03/10) More choppy trading session expected in next week!

In last week, STI seesawed before ending with a point lost from the opening of 2907 and close lower at 2906 to mark a “Doji” candlestick with long shadow (High Indecision) in the weekly chart. The VOL in this week hit another LOWEST record for the entire 2010 and slightly lower compared with the previous week. Overall with all the Greece and Portugal news on the headline for this week, most of the traders have been willing to bet that the market is overdue for a correction to shake out speculative excess.

On Fri, the market has been helped by news that Greece's neighbors have agreed to a bail out plan for the debt-laden nation, if necessary, in conjunction with the International Monetary Fund. This news has prompted Standard & Poor's to affirm its ratings stance on Greece.

Trading sessions of STI in this week have been rocky, marked by solid intraday rallies that gave way to lackluster finishes in the afternoon. However the bull rally is still intact since STI has managed to hold itself at the “gap support” at 2888

Important resistance of STI: 2935

Immediate Support of STI: 2888

Next Immediate Support of STI: 2850

MY TACTIC: STI has a slight pullback but managed to hold its stance at support level of 2888. However it is important to note that the VOL is LOW in this week, thus I would advise to hold any buying for the time being and keep at sideline.