FTSE Straits Times Index (STI IND)
Trading at the key support level now
The outlook of the FSSTI index is bearish as it is still trading below the cloud. Price has rebounded from the low in Mar20, but this rebound was capped by the base line resistance. It is now testing the previous low support area at 2,490. This will be a key support as the price could not violate this support level to form higher highs and a higher low pattern. If this index could sustain at 2,490, there is higher chance for the price to test its high at 2,839 again. A violation of 2,490 would likely bring the price lower to test 2,208 again. The momentum indicator, the MACD, is bearish but it is still rising at the moment.
Investors could accumulate and sell on the rally towards the gap resistance, if this index could sustain at the 2,490 key support level.
Support: 2,490 / 2,210
Resistance: 2,840 / 2,960
Wong Shueh Ting, CFTe