In last week, STI lost 78 points from the opening of 2773 and close lower at 2695. A black candle sticks with little upper/lower shadow indicates that investors have no qualms in selling the stocks lower.

Key Economics Data report:

In last week, investors are pleased that most of the European Union’s 27 leaders agreed to a framework for a closer fiscal union that would allow for a central budget authority and sanctions if budgets aren’t balanced. Britain, not a member of the smaller group of euro zone countries, refused to support the plan, but all of the countries using the euro are expected to proceed.

Technical Analysis on STI

STI index has re-test the resistance at 2679 in the past 2 weeks and closed only slightly above this critical level.

1) In weekly chart, a black candle sticks with little upper/lower shadow affirms that investors are selling their stocks for …