FTSE Straits Times Index
The outlook of the FSSTI index is still bearish as it is still trading below the cloud. This index could be currently consolidating within a triangle pattern. The lower triangle support of 2,478, which is also near the Fibonacci 62% correction point of Mar-Jun 20’s rally, is providing support at the moment. There is also a bullish conversion and base line crossover that hints at potential upside. A triangle breakout of 2,575 is necessary for this index to move higher and to test 2,780. A violation of the 2,478 support would suggest a deeper correction. The MACD is still bearish at the moment, as both of its lines are below the zero line, but there was a bullish MACD crossover earlier.
Investors could accumulate and buy on breakout when
this index breaks above the triangle pattern.
Support: 2,478 / 2,210
Resistance: 2,780 / 2,840
Wong Shueh Ting, CFTe