Outlook:
The FSSTI index is now moving within a rising channel
formed since Sep 19. There is an overhead downtrend
line resistance formed since Apr 18 at 3,285. The 20-
week moving average is moving higher and is likely to
have a bullish crossover with the 50-week moving
average in the coming session. These could increase the
likelihood of our index breaking above the downtrend line
to continue moving higher towards its previous high
resistance at 3,415. The RSI is rising above its neutral
level and the MACD is also moving higher. However, a
failure move to break above the downtrend line will likely
cap the rally, and could bring the index lower to the lower
channel support or even lower to its previous low support
of 3,144.
Strategy:
Investors could accumulate further if the index breaks
above the downtrend line.
Support: 3,140 /3,040
Resistance: 3,285 / 3,400
Analyst
Wong Shueh Ting, CFTe