SINGAPORE (April 24): The Straits Times Index has sunk below its breakout level of 2,561. The breakout took place in mid-April but the subsequent rise was not able to garner volume. In addition, quarterly momentum was not able to move above its moving average and resistance and is easing.

For the STI, the negatives included the breakout taking place on low volume, and after the breakout, volume continued to contract as the index struggled to make headway. 

At that time, it was clear that the breakout was weak. For instance, the daily candlestick chart shows higher volume on the black candle days, and lighter volume on the white candle days, and we ended the previous week on April 17 on black candle. On April 24, the STI has also closed on a black candle day.  

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