Straits Times Index sets to start its downtrend formation.

Last week, STI managed to rebound and recovered part of the losses that was incurred during the previous week’s drop. Coupled with the earnings seasons, many speculators were speculating of good earnings results which help STI to lift towards its upper gap resistance of 3063 level. However, closer to end of the week, several earnings reports failed to meet the expectations attracted sellers to enter the market. This forces STI to stay resisted by the gap resistance level and retracement was seen at the end of the week. Despite the bullish start in the week, STI only managed to close 0.2% higher for the week as most of the gains were returned on last Friday. STI ended the week at 3048 level. Last Friday, DJI fell strongly after poor earnings report by companies. DJI closes with 205.43pts lower marking ...