Straits Times Index limited downside, possible reversal to happen.

Straits Times Index limited downside, possible reversal to happen.

It was an interesting week for STI as it had swung from bullishness to bearishness within the week as the FOMC meeting draws to a conclusion on Thursday morning. The week started bullishly as the market participants snaps up bargain in the market; causing STI to rebound back to 3180 level. However, it managed to break the resistance level and instead, climbed to the next resistance level of 3230 where the gap resistance existed. This gap resistance was closed and held strongly which caused STI to form a bearish reversal candle on Wednesday. This bearish candle is also anticipating the outcome of the FOMC meeting. Indeed, the outcome did not turn out well as market participants confirm that the stimulus package will be more likely to be reduced when economic situation in US continues to improve. This caused a major sell …