FTSE Straits Times Index
A price correction that started since early-Jun 20 has brought the FSSTI index lower to the key Fibonacci 62% correction point of Mar-Jun 20’s rally at 2,448. There is an intraweek candle that has just broken above the triangle pattern, but we would like to see a firm close above the upper triangle’s declining trendline at the end of this week to confirm the validity of this breakout. The MACD is still bearish at the moment, but the histogram is still moving higher, suggesting potential upside ahead. Once the breakout is confirmed, this index is likely to
move higher and test the overhead cloud resistance at 2,800.
Investors could buy on breakout once the triangle breakout is confirmed, and could use the previous low of 2,448 to manage the risks.
Support: 2,448 / 2,210
Resistance: 2,740 / 2,840
Wong Shueh Ting, CFTe