STI failed to continue its breakout movement yesterday as it faced profit taking pressure. It is now trading below 3420 resistance level again and hence, the breakout is just a whipsaw action. It opened slightly higher than 3420 level but it failed to sustain at that level. Selling pressure started to enter the market after opening and caused STI to drop much lower during the day. A low of 3401 level was hit before it starts to settles for it closing. STI closed at 3408.02 level with 15.33pts down. Will STI be able to sustain its current levels or will it continue to seek its support level?

The price movement yesterday had confirmed that the resistance at 3420 level is still holding firmly. This price action implies that STI is still consolidating and might be subjected to further retracement risk currently. ...