Straits Times Index poised for a rebound this week.

Bearish movements were gaining traction last week as fears of US tapering continue to loom the market. Straits Times Index attempted to rebound during the start of the week but it faces selling pressure. Its support at 3100 level failed to hold and caused STI to slide strongly on Tuesday. Market confidence was lost and caused STI to break another support level at 3065 level on Wednesday and eventually another support level at 3030 level was being tested on Thursday. STI held the support well on Friday to end the selling streak during the week. Eventually, STI managed to close at 3066 level and made a loss of 48.15pts for the week.  Can STI gain bullish traction this week and rebound?

Let’s review STI’s chart to find out the answer.

Trend: Downtrend, 20ma down, MacD below 0.

Support: 3030, ...