Downtrend confirmed for Straits Times Index

Downtrend confirmed for Straits Times Index

The start of the month of December was a bearish one for Straits Times Index. Concerns of US tapering move was heightened last week’s job data was expected to be a factor of consideration. The result of the job data was speculated to be better; better job data implies improving economic situation and hence, tapering can be done. Therefore, market participants exited the market in anticipation. The start of the week was flat as there was no reason for strong movement. The key action came in on Wednesday as the previous night closing of DJI triggered worries of tapering. Support level of 3180 was broken and this indicated that there was risk of downside breakout of the symmetrical triangle. 3160 was broken the next day and the breakdown of symmetrical triangle was being confirmed. Thus, STI slide further after 3160 breaks and eventually closed …