Straits Times Index attempting to reversal its trend again.

Last week turned out to be a reversal week for Straits Times Index as the market got affected by China economic woes and Ukraine tension. The week started off bearishly as the market failed to push beyond its high after breaking 3120 resistance level. Instead, it consolidated at 3120 level for the first 2 days of the week. The turning point happened on Wednesday where STI broke 3120 level. This was due to concerns of China economic situation. A gap down was created, causing STI to slide further for the week. The gains from the previous week were quickly being returned. Hence, STI closed at 3072.72 level and lost a total of 62.54pts for the week. Does last week’s movement signal a reversal in trend again? Or is STI merely doing a consolidation move for uptrend formation?

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