FTSE Straits Times Index
A bullish engulfing reversal candlestick pattern was spotted last week when the FSSTI index retraced to the key Fibonacci 62% correction point of the Mar-Jun 20’s rally. This is a good sign and could hint of a potential bottom at the moment. This index is going to test the overhead cloud resistance at 2,800, and a breakout would turn the outlook for this index positive for the first time since Feb 20. However, if the FSSTI index cannot break through the cloud resistance, a decline would be expected. The MACD is now moving higher towards the zero line, suggesting a bullish momentum ahead.
Investors can accumulate as the market could have bottomed last week. Sell on rally when the index approaches and cannot break through the cloud and gap resistance.
Support: 2,420 / 2,210
Resistance: 2,800 / 2,955
Wong Shueh Ting, CFTe