Straits Times Index is running the risk of a longer term downtrend movement.

Straits Times Index is running the risk of a longer term downtrend movement.

It had been a very bearish week for Straits Times Index last week as traders continues to exit the market in fears of the possible decision to withdraw the bond buying package by the US Feb. The week started with strong selling pressure which caused STI to plunge downwards with 24.2pts down. Although it hit a support level on that day, it failed to stop STI from sliding further. STI continues to approach another support level at 3130 level the next day but the selling momentum continues to refuse to stop. Instead, STI break this support and attempted to reach for a much lower support level at 3080 level. On Thursday, STI had found its support at 3080 level and managed to maintain at that level for the week. It was definitely a sharp drop for …