FTSE STI closed 3,252.00 on 12th Nov 2010, pulling back 1.84% since hitting a peak of 3,313.
Though with the pull back, STI still trading within the uptrend channel which it has established since May 2010. Incidentally, the 3,313 value was the upper boundary of the channel and with the current pull back, it could fall to the lower boundary of the channel at 3,200. From 3,310 to 3,200 ( the upper and lower boundary of the channel ), that is a 3.3% pull back and such an amount is relatively common and not something to be panic with.
The long term term for STI still in uptrend and hence STI could see a rebound upon hitting the lower boundary of the channel. Some points to note :-
1. Support at lower boundary of 3,200 ( around that region and not precisely that value ) must not be broken down with high volume to maintain the uptrend overall.
2. Breaking down at lower boundary of channel at 3,200 ( with high volume ) could trigger a downtrend channel with first level support at 3,120 and then next at 3,040.
