Outlook
The FSSTI has rebounded after being supported by
the long term rising trendline that formed since 2009.
It is currently on the way to testing the overhead
cloud resistance. The cloud is relatively thin at the
moment, increasing the chances of the index
breaking above the cloud to be bullish. There is also
a bullish MACD crossover, hinting at increased
momentum. The index is likely to break above the
cloud for a test of the downward trendline. We could
see an acceleration of the upward movement should
the index penetrate above the downward trendline. A
failure to move above the downtrend line could bring
the index lower to test the rising trendline again
Strategy:
Investors could accumulate and sell on strength, or
wait for a break of the downtrend line to accumulate.
Support: 3,185 / 3,110
Resistance: 3,340 / 3,415
ANALYST
Wong Shueh Ting, CFTe