FTSE Straits Times Index
The outlook of the FSSTI index has turned bullish as it is now trading above the cloud. It rebounded from the low
of 2,420 on Oct 20, and is now testing the overhead gap resistance zone of 2,890-2,960 that formed since Mar 20. A correction could occur if this index is unable to break through this gap resistance zone, but it has to stay above 2,710 to maintain the bullish trend. The momentum indicator, the MACD, has been rising steadily and the slow line is moving higher towards the zero line. The RSI is also near the overbought region. We could see this index moving higher towards the next resistance level if it can penetrate above the gap resistance zone.
Investors could look to buy on dip when this index pulls back near the 2,710 support zone, and use 2,670 to control risks.
Support: 2,710 / 2,580
Resistance: 2,960 / 3,110
Wong Shueh Ting, CFTe