STI chart.  Source from www.chartnexus.com

STI has broken the 2008 year low of 2760 points convincingly. Much to the delight of the short-sellers, the market broke down swiftly and we are now trading around 2440 points which is the immediate technical support formed in 2006. We do not rule out a final resting ground of STI to be at around 2200 points which is the 61.8% Fibonacci retracement support. It will be very ugly if STI is to break this level as the next technical support level is located below the 2000 points level. Any rebound for now is likely to be capped at around 2760 points. There is little incentive for a strong rebound due to the current weak sentiment. Traders may want to wait for a positive divergence to develop on the technical indicators before building a bullish portfolio. For traders who know how to make use of contract for a difference (CFD), it may be prudent to wait for a relief rally to happen for good shorting opportunities. With these strategies in mind, let us read on to find out more on the three featured stocks.